Ousted WeWork co-founder bids to buy company: reports

Ousted WeWork co-founder bids to buy company: reports

The pandemic exacerbated WeWork's woes as people avoided offices for fear of Covid-19
The pandemic exacerbated WeWork's woes as people avoided offices for fear of Covid-19. Photo: Drew Angerer / GETTY IMAGES NORTH AMERICA/Getty Images via AFP
Source: AFP

Ousted WeWork co-founder Adam Neumann recently bid more than $500 million to buy back the struggling office-sharing group, according to media reports Monday.

Neumann recently submitted the offer, but it was not clear how he would finance such a deal, the Wall Street Journal and CNBC reported, citing sources close to the matter.

Neumann is seeking to buy the company out of bankruptcy, according to a letter to WeWork seen by AFP last month.

WeWork went into bankruptcy in November with its major creditors set to take control of the company.

At its height, WeWork was the biggest private renter of office space in Manhattan, with co-working spaces in cities across the globe.

But investors became concerned not only about WeWork's business model and unbridled growth, but also about Neumann's reliability as a boss.

Read also

US court dismisses Musk lawsuit against anti-hate watchdog

A charismatic figure, Neumann was known for his sometimes abrupt decisions.

In September 2019, the Board of Directors dismissed him, shortly after the company's stock market debut was postponed.

Neumann was forced out of the company with a $1.7 billion exit package, while the company's value was slashed to $8 billion.

WeWork was then disrupted by the Covid-19 pandemic, which emptied offices as workers went remote, and the company never fully recovered.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Online view pixel