Adam Neumann Submits Unsolicited $500 Million Bid for WeWork Post-Bankruptcy

Adam Neumann has made a significant move to acquire WeWork out of bankruptcy by submitting an unsolicited bid exceeding $500 million. Sources familiar with the matter have revealed to CNBC that the bid has the potential to increase to $900 million, subject to due diligence.

Uncertainty Surrounding Financing

Details about Neumann’s financing remain unclear at present. Although, sources have informed CNBC that Dan Loeb's Third Point is not involved in the offer. This contradicts previous statements from Neumann's counsel, who had indicated that Loeb's investment firm was backing the WeWork founder's offer.

Neumann's Reemergence and Offer

This development comes as Neumann, his family office Nazare, and his a16z-backed real estate venture Flow filed a notice of appearance in WeWork's bankruptcy docket on Monday. Just two weeks ago, a coalition of financing partners expressed interest in making a potential bid, which was reported to surpass the initially disclosed $500 million offer. Flow, however, did not provide a comment regarding the potential $900 million bid.

WeWork's Response

Following these developments, a spokesperson for WeWork made a statement indicating, “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.”

Impact on Bankruptcy Proceedings

Neumann's bid, initially reported by the Wall Street Journal, is likely to complicate WeWork's bankruptcy proceedings. The company has been striving to reject numerous leases, allowing it to terminate longer-term commitments in less profitable markets. However, some of WeWork's lessors have opposed these efforts.