Adam Neumann Makes a $500 Million Bid For WeWork (cnbc.com)
(Tuesday March 26, 2024 @06:40PM (BeauHD)
from the back-at-it-again dept.)
- Reference: 0173390305
- News link: https://slashdot.org/story/24/03/26/202221/adam-neumann-makes-a-500-million-bid-for-wework
- Source link: https://www.cnbc.com/2024/03/25/adam-neumann-submits-bid-of-more-than-500-million-to-buy-wework.html
Adam Neumann has [1]submitted a $500 million bid to acquire WeWork out of bankruptcy . According to CNBC, it "could go up to $900 million pending due diligence." From the report:
> Neumann's financing was not immediately clear, although people familiar with the matter told CNBC that Dan Loeb's Third Point was not involved in the offer. Neumann's counsel had previously said that Loeb's investment firm was backing the WeWork founder's offer, but Third Point disputed that assertion in a prior statement. The uncertainty over Neumann's financing, coupled with his [2]track record at the company, could dampen WeWork's receptiveness to his offer. Neumann, his family office Nazare, and his Andreessen Horowitz-backed real estate venture Flow filed a notice of appearance in WeWork's bankruptcy 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 Flow spokesperson said in a statement. The offer comes weeks after it emerged Neumann had renewed interest in taking back the company he was ousted from five years ago. WeWork filed for bankruptcy in 2023 after years of struggles, and has been working with bankruptcy advisors to restructure and streamline the business.
"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 said Monday in a statement.
[1] https://www.cnbc.com/2024/03/25/adam-neumann-submits-bid-of-more-than-500-million-to-buy-wework.html
[2] https://slashdot.org/story/21/11/09/1925213/ex-wework-ceo-adam-neumann-has-regrets-but-no-apologies
> Neumann's financing was not immediately clear, although people familiar with the matter told CNBC that Dan Loeb's Third Point was not involved in the offer. Neumann's counsel had previously said that Loeb's investment firm was backing the WeWork founder's offer, but Third Point disputed that assertion in a prior statement. The uncertainty over Neumann's financing, coupled with his [2]track record at the company, could dampen WeWork's receptiveness to his offer. Neumann, his family office Nazare, and his Andreessen Horowitz-backed real estate venture Flow filed a notice of appearance in WeWork's bankruptcy 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 Flow spokesperson said in a statement. The offer comes weeks after it emerged Neumann had renewed interest in taking back the company he was ousted from five years ago. WeWork filed for bankruptcy in 2023 after years of struggles, and has been working with bankruptcy advisors to restructure and streamline the business.
"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 said Monday in a statement.
[1] https://www.cnbc.com/2024/03/25/adam-neumann-submits-bid-of-more-than-500-million-to-buy-wework.html
[2] https://slashdot.org/story/21/11/09/1925213/ex-wework-ceo-adam-neumann-has-regrets-but-no-apologies
What is the game? (Score:2)
by aaarrrgggh ( 9205 )
Presumably his current investors know how much of a d-bag the guy is and that he cannot be trusted... so what is the investment thesis here? His buy-and-lease-back game is hard to pull off again, long-term leases on distressed properties is a huge gamble, and the old company lost many of its most compelling properties... not to mention many of them were snatched up already at a steep discount.
Actually running the business with profit and improving margins? Doesn't seem like that is his game.
Looting (Score:3)
So he made a billion by leaving and now wants to buy it for half that. Presumably so he can loot it again.
Punchable face contest: Adam Nuemann Contender? (Score:1)
I'm gonna put him head to head with Martin Shkreli and see who wins the "Most Punchable Face" contest.