Adam Neumann of WeWork and Victor Fung Kwok-king, proper, chairman of Fung Group, attend a signing ceremony at WeWork’s Weihai Street location on April 12, 2018 in Shanghai, China.
Jackal Pan | Visible China Group | Getty Pictures
Adam Neumann has submitted an unsolicited bid in extra of $500 million to amass WeWork out of chapter, an individual conversant in the matter informed CNBC.
That bid may go as much as $900 million pending due diligence, the particular person mentioned.
Neumann’s financing was not instantly clear, though individuals conversant in the matter informed CNBC that Dan Loeb’s Third Level was not concerned within the provide. Neumann’s counsel had beforehand mentioned that Loeb’s funding agency was backing the WeWork founder’s provide, however Third Level disputed that assertion in a previous assertion.
The uncertainty over Neumann’s financing, coupled together with his observe file on the firm, may dampen WeWork’s receptiveness to his provide. Neumann, his household workplace Nazare and his Andreessen Horowitz-backed actual property enterprise Move filed a discover of look in WeWork’s chapter docket on Monday.
“Two weeks in the past, a coalition of half a dozen financing companions — whose identities are identified to WeWork and its advisors — submitted a possible bid for considerably extra” than the initially reported $500 million, a Move spokesperson mentioned in an announcement. Move didn’t reply to CNBC’s request for remark relating to the $900 million potential bid.
The provide comes weeks after it emerged Neumann had renewed curiosity in taking again the corporate he was ousted from 5 years in the past. WeWork filed for chapter in 2023 after years of struggles, and has been working with chapter advisors to restructure and streamline the enterprise.
“As we have mentioned beforehand, WeWork is a rare firm and it is no shock we obtain expressions of curiosity from third events regularly. Our Board and our advisors evaluation these approaches within the unusual course, to make sure we at all times act in one of the best long-term pursuits of the corporate,” a WeWork spokesperson mentioned Monday in an announcement.
Neumann’s bid, which was first reported by The Wall Road Journal, could complexify WeWork’s chapter proceedings. The corporate is in search of to reject quite a few leases, which means it will have the ability to stroll away from longer-term commitments in much less profitable markets. A few of WeWork’s lessors have fought these efforts.
