Adam Neumann wants to buy WeWork out of bankruptcy despite being ousted and paid $445 MILLION golden parachute: Experts say struggling company could sell for just $500M
Ousted WeWork founder Adam Neumann is trying to buy back the company after it filed for bankruptcy in November.
Neumann’s new real estate company, Flow Global, has sought to buy WeWork or its assets and provide bankruptcy financing to keep it afloat, the New York Times reported Tuesday.
Neumann has worked with hedge funder Dan Loeb in his bid to recapture the company, but accuses WeWork of blocking the bid, according to a legal brief published by the Times.
“We are writing to express our dismay at WeWork’s lack of involvement, even to provide information to my customers in what is intended to be a value-maximizing transaction for all stakeholders,” wrote Neumann’s attorney Alex Spiro, who also represents Elon Musk.
WeWork, once valued at $47 billion on paper, ousted Neumann as CEO in 2019 amid scathing criticism of his leadership and “tequila-driven” lifestyle.
Adam Neumann and his wife Rebekah live in South Florida
Major financial banker SoftBank offered Neumann a severance package worth an initial $1.7 billion, but reneged on the deal and ultimately paid him about $445 million in cash and stock, according to the Wall Street Journal.
News of Neumann’s offer comes a day after a lawyer for the shared office space provider said WeWork could be forced to take out a new bankruptcy loan to make up for slower-than-expected progress in lease negotiations.
More to come