Adam Neumann makes a $500 million bid for WeWork, may attain $900 million

Adam Neumann has submitted an unsolicited bid in extra of $500 million to amass WeWork out of bankruptcy, an individual aware of the matter advised CNBC.

That bid may go as much as $900 million pending due diligence, the individual stated.

Neumann’s financing was not instantly clear, though individuals aware of the matter advised CNBC that Dan Loeb’s Third Level was not involved within the provide. Neumann’s counsel had beforehand stated that Loeb’s funding agency was backing the WeWork founder’s provide, however Third Level disputed that assertion in a previous assertion.

The uncertainty over Neumann’s financing, coupled together with his track record on the firm, may dampen WeWork’s receptiveness to his provide. Neumann, his household workplace Nazare, and his Andreessen Horowitz-backed actual property enterprise Circulate filed a discover of look in WeWork’s chapter docket on Monday.

“Two weeks ago, a coalition of half a dozen financing partners — whose identities are known to WeWork and its advisors — submitted a potential bid for substantially more” than the initially reported $500 million, a Circulate spokesperson stated in a press release. Circulate didn’t reply to CNBC’s request for remark relating to the $900 million potential bid.

The provide comes weeks after it emerged Neumann had renewed curiosity in taking again the corporate he was ousted from five years ago. WeWork filed for chapter in 2023 after years of struggles, and has been working with chapter advisors to restructure and streamline the enterprise.

“As we’ve said previously, WeWork is an extraordinary company and it’s no surprise we receive expressions of interest from third parties on a regular basis. Our Board and our advisors review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company,” a WeWork spokesperson stated Monday in a press release.

Neumann’s bid, which was first reported by the Wall Road Journal, could complexify WeWork’s chapter proceedings. The corporate is in search of to reject quite a few leases, that means it will be capable to stroll away from longer-term commitments in much less profitable markets. A few of WeWork’s lessors have fought these efforts.