Former WeWork Inc CEO Adam Neumann has proposed a bid of over $500 million to buy back the bankrupt co-working company.
Neumann, ousted from WeWork's leadership five years ago, has been actively seeking avenues to regain control of the company.
Collaborating with Dan Loeb's Third Point hedge fund and other investors, Neumann's bid signals a persistent effort to influence WeWork's future direction.
Third Point, however, is not directly involved in Neumann's current bid, the Wall Street Journal noted, citing insiders.
Despite initial speculation, the hedge fund has clarified that it hasn't committed to any transaction related to WeWork.
Neumann's real estate venture, Flow Global, has engaged in preliminary discussions with Third Point and other potential investors but hasn't disclosed specific details regarding financial backing for the bid.
WeWork, once valued at an $47 billion, is now navigating bankruptcy proceedings with a focus on restructuring.
The company aims to emerge from bankruptcy in the second quarter. WeWork's spokesperson emphasized the company's commitment to evaluating expressions of interest from third parties to ensure the best long-term interests of the business.
While Neumann has indicated a willingness to invest additional hundreds of millions in the company, the specifics of his coalition of financing partners remain undisclosed.
In his February letter to WeWork, Neumann attributed the company's financial troubles in bankruptcy to management's failure to explore financial support options.
He expressed frustration at not receiving the necessary information to submit a bid and claimed he had approached the company as early as December.
WeWork reportedly intends to restructure into a more lucrative business and cede control to creditors, as per the Wall Street Journal.
The Financial Times noted that Neumann's bid must appease creditors set to gain control post-bankruptcy.
They see WeWork's value tied to landlord concessions and location closures for cost control. Other wealthy entities are considering their bids for the company after analyzing its finances.
