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Adam Neumann, once the driving force behind WeWork before his ousting, has made a bold move to reclaim control of the beleaguered office rental company.
His property venture, Flow, disclosed on Monday that it had submitted a bid valued at over £395 million for WeWork, with backing from a “coalition of half a dozen financing partners.” This bid, reported by The Wall Street Journal, marks Neumann’s latest attempt to steer the company he founded back on course.
In response to queries about the bid, WeWork stated to Reuters, “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 advisers review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company.”
Despite facing Chapter 11 bankruptcy in the US last November due to a confluence of factors including high interest rates and diminished demand for office spaces amidst remote working trends, WeWork remains committed to its restructuring efforts. The company expressed confidence that its current turnaround plans will lead to a robust and profitable future.
Neumann’s renewed involvement with WeWork follows reports from last month indicating his efforts to negotiate either an outright purchase of the company or to provide it with debt financing. Neumann, once poised to become one of the wealthiest individuals globally with a projected fortune of $14 billion from WeWork’s planned 2019 IPO, has been exploring avenues to reassert his influence over the company’s direction.
WeWork’s journey has been marked by both ambition and controversy. Once valued at an astonishing $47 billion, the company amassed nearly 800 locations across 39 countries, investing heavily in prime real estate markets. However, its IPO plans were derailed by investor concerns, exacerbated by governance issues such as Neumann’s outsized control over the company and allegations of erratic behavior.
Neumann’s return to the forefront with Flow, a property venture focusing on millennial rentals, adds another layer to his complex narrative. Despite announcing plans for Flow’s launch in 2023, details of its business model remain undisclosed, leaving observers curious about Neumann’s next move in the evolving saga of WeWork.