Adam Neumann submits bid of greater than $500 million to purchase WeWork

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

Pending due diligence, that bid may go as much as $900 million, the individual stated.

Neumann’s financing was not instantly clear, though one other individual acquainted with the matter advised CNBC that Dan Loeb’s Third Level was not concerned within the provide. Neumann’s counsel had beforehand stated that Loeb’s funding agency was backing the WeWork founder’s provide.

The provide comes weeks after it emerged Neumann had renewed curiosity in taking again the corporate he was ousted from 5 years in the past. WeWork filed for chapter in 2023 after years of struggles, and has been working with chapter advisors to restructure and streamline the enterprise.

“Two weeks in the past, a coalition of half a dozen financing companions — whose identities are recognized to WeWork and its advisors — submitted a possible bid for considerably greater than The Wall Road Journal reported with out contacting us,” a Circulation spokesperson stated in a press release.

“As we have stated beforehand, WeWork is a unprecedented firm and it is no shock we obtain expressions of curiosity from third events regularly. Our Board and our advisors assessment these approaches within the extraordinary course, to make sure we all the time act in the perfect long-term pursuits of the corporate,” a WeWork spokesperson stated Monday in a press release.

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