Adam Neumann, the billionaire entrepreneur behind the once high-flying real estate company WeWork, is making headlines again. According to a recent report from DealBook, Neumann is on a mission to reclaim control of the company he co-founded back in 2010, despite being ousted from his role in 2019.
Neumann, along with his startup Flow and Dan Loeb’s Third Point fund, has been actively pursuing this goal since December 2023, as revealed in a letter obtained by DealBook from Neumann’s counsel, Alex Spiro. Their interest extends even further back, with Neumann’s attempts to secure financing dating back to October 2022, although former CEO Sandeep Mathrani rejected his proposals at the time.
Despite initial resistance from WeWork advisors, Neumann’s persistence seems to have paid off, as they eventually suggested he provide debtor-in-possession (DIP) financing instead of a traditional term sheet. While it remains unclear whether formal agreements have been reached between Neumann and WeWork, the exchange of mark-ups indicates ongoing negotiations.
WeWork’s journey has been tumultuous, culminating in its filing for bankruptcy in November 2023 amidst years of financial turmoil. Neumann’s departure in 2019 marked a significant turning point for the company, as concerns over corporate governance and valuation mounted among investors.
As news of Neumann‘s bid to reclaim WeWork surfaces, speculation swirls about the potential implications for the company’s future. With no immediate response from Third Point, Neumann, or Spiro to CNBC’s request for comment, the saga continues to unfold, leaving many eagerly awaiting the next chapter in WeWork’s story.