Guess Who's Back? Adam Neumann Reportedly Eyes WeWork As Bankruptcy Looms Large

Co-founder and former CEO of WeWork Inc. (OTC:WEWKQ), Adam Neumann, along with his capital providers, including Dan Loeb‘s Third Point, are considering making an offer to purchase WeWork out of bankruptcy.

What Happened: Neumann and Third Point have been attempting to acquire crucial information from WeWork since December to formulate a bid, as per a letter seen by Bloomberg News. They have also been working on a bankruptcy financing package for the coworking company. The potential bid could be for the entire company or its assets, but the specifics of Neumann’s offer were not disclosed.

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The current bankruptcy plan for WeWork suggests transferring ownership to the company’s most senior debt holders, which includes the holders of its credit line, first-lien notes, and second-lien notes. This could potentially lead to the wiping out of third-lien noteholders and unsecured creditors.

Why It Matters: The potential bid by Neumann and Third Point comes after a tumultuous period for WeWork. In September 2019, Neumann stepped down as CEO amid pressure from board members and investors. The company then underwent a series of changes, including appointing a new CEO, David Tolley, in 2023.

Despite these efforts, WeWork was expected to file for bankruptcy in November, with its stock down more than 99% from its listing price.

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