WeWork Co-Founder Drops Efforts To Reacquire the Company

Adam Neumann, co-founder of WeWork, has dropped efforts to buy out the bankrupt co-working space he resigned from as chief executive five years ago.

In a statement on Tuesday, Neumann said, “For several months, we tried to work constructively with WeWork to create a strategy that would allow it to thrive. Instead, the company looks to be emerging from bankruptcy with a plan that appears unrealistic and unlikely to succeed.”

In March, Neumann tried to reclaim the company he founded by putting forward a bid exceeding $650 million, alongside a plan to wipe out its large $4 billion debt load.

Neumann made his mark by paving the way for WeWork to thrive on a global scale, which he affirmed would revolutionize the office property sector. However, post-pandemic, things took a turn.

In November 2023, WeWork declared bankruptcy due to a decline in the office real estate landscape. The once-successful company has been grappling with the consequences of its rapid expansion and the dampened demand for co-working spaces brought on by the COVID-19 pandemic.

When WeWork filed for bankruptcy, it reported $19 billion in debts against $15 billion in assets. Prolific investors like SoftBank Group Corp. and the Vision Fund are set to incur substantial additional losses on the venture.

Neumann stepped down as WeWork’s chief executive in 2019 when the board put pressure on him after substantial company losses. This year, he began looking to reclaim ownership. Supported by his new real estate company, Flow Global, he put forth the $650 million offer to purchase the company.

However, WeWork declined the offer. In April, a bankruptcy court in Newark approved WeWork’s plan, transferring control of the co-working business to its service partner, Yardi Systems.