Adam Neumann drops bid to acquire bankrupt WeWork
Adam Neumann Quits WeWork Buyback Bid: Why?
Adam Neumann has abandoned his attempt to buy back WeWork, the company he founded and was ousted from in 2019. His real estate venture, Flow Global, had offered over $500 million for the bankrupt firm. Neumann cited an unrealistic plan by WeWork as his reason for withdrawing the bid. WeWork, which filed for Chapter 11 bankruptcy last November, has struggled with heavy lease obligations and a significant drop in valuation from its peak.
What was the financial value of the bid Adam Neumann's venture, Flow Global, submitted to acquire WeWork?
Adam Neumann's venture, Flow Global, submitted a bid of more than $500 million to acquire the bankrupt shared office space provider WeWork and its assets3.
What reasons did Neumann cite for WeWork's post-bankruptcy plan being unrealistic and likely to fail?
Adam Neumann criticized WeWork's post-bankruptcy exit plan as being unrealistic and likely to fail. He expressed concerns after his attempts to work constructively with WeWork to develop a viable strategy for its future. Neumann believed that the plan devised by WeWork as it emerged from bankruptcy lacked feasibility and would not allow the company to thrive. His observations and criticisms came after his bid to reacquire the company through his new venture, Flow Global, was unsuccessful.