Adam Neumann wants to buy WeWork out of bankruptcy despite being ousted and paid $445 MILLION golden parachute: Experts say struggling company could sell for just $500M

• Neumann is partnering with hedge funder Dan Loeb in bid for WeWork
• He founded the company in 2010 but was ousted in 2019 amid failed IPO
• Neumann accuses bankrupt WeWork of stonewalling his takeover bid 

Ousted WeWork founder Adam Neumann is trying to buy back the company after it filed for bankruptcy in November.

Neumann’s new real estate company, Flow Global, has sought to buy WeWork or its assets, as well as provide bankruptcy financing to keep it afloat, the New York Times reported on Tuesday.

Neumann has partnered with hedge funder Dan Loeb in his push to retake the company, but accuses WeWork of stonewalling the bid, according to a legal letter published by the Times.

‘We write to express our dismay with WeWork’s lack of engagement even to provide information to my clients in what is intended to be a value-maximizing transaction for all stakeholders,’ wrote Neumann’s attorney Alex Spiro, who also represents Elon Musk.

WeWork, once valued as much as $47 billion on paper, ousted Neumann as CEO in 2019 amid scathing criticism of his leadership and ‘tequila-fueled’ lifestyle.

Ousted WeWork founder Adam Neumann is trying to buy back the company after it filed for bankruptcy in November

WeWork, once valued as much as $47 billion on paper, ousted Neumann as CEO in 2019 amid scathing criticism of his leadership and ‘tequila-fueled’ lifestyle

In a restructuring plan filed on Sunday, WeWork said that it had more than $4 billion in secured debt. Experts told the Times the company could now sell for as little as $500 million, a fraction of its secured debt.

Under Neumann, WeWork grew to be the most valuable US startup, but his pursuit of growth at the expense of profit, and revelations about his eccentric behavior, led to his ouster and the derailment of an initial public offering.

Key financial banker SoftBank initially offered Neumann a severance package valued at $1.7 billion, but reneged on the deal and ended up paying him about $445 million in cash and stock, according to the Wall Street Journal.

After a public listing in 2021, WeWork racked up losses on its long-term lease obligations as more people began working from home during the pandemic and demand for office space plunged.

Shortly before WeWork filed for bankruptcy in November, Neumann said in a statement, ‘I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.’

The news of Neumann’s bid comes a day after an attorney for the shared office space provider said WeWork may be forced to take on a new bankruptcy loan to make up for the slower-than-expected progress on rent negotiations.

WeWork’s post-bankruptcy business plan is premised on a significant reduction in future rent costs from its landlords, and WeWork is at a crossroads in that effort, according to attorneys for WeWork and its landlords who spoke at a bankruptcy court hearing in Newark, New Jersey.

Adam Neumann and his wife Rebekah have been living in South Florida

Several of WeWork’s landlords decried the company’s ‘hardball tactics’, saying that US bankruptcy law requires companies to keep up with rent for properties that they continue to use.

Kris Hansen, an attorney representing WeWork creditors, said that WeWork has shown ‘painfully little progress’ in its discussions with landlords, raising doubts about the company’s long-term ability to pay its debts.

WeWork attorney Steven Serajeddini acknowledged that the company’s initial round of negotiations had been headed for ‘certain failure,’ but he said WeWork has had more success after withholding as much as $33 million in January rent from certain landlords.

‘The message was clear – you’re either with us or against us,’ Serajeddini told US Bankruptcy Judge John Sherwood, who is overseeing the company’s Chapter 11.

‘If your focus is on one month’s rent, instead of saving this company, you’re on the wrong side and your lease will be rejected.’

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