Proactive Investors - Ousted WeWork Inc (NYSE:WE) founder Adam Neumann is reportedly pulling out the stops to buy and regain control of the workspace firm after it fell into bankruptcy last November.
According to the New York Times, Neumann’s real estate firm Flow Global has teamed up with hedge fund Third Point, headed by Dan Loeb, to bid on the embattled firm.
However, Neumann accused WeWork of a lack of engagement over the proposal through a letter from his lawyers on Monday, which described the takeover as a “value-maximizing transaction for all stakeholders”.
“In a hybrid work world where demand for WeWork's product should be greater than ever, my clients believe that the synergies and management expertise offered by an acquisition by my clients could significantly exceed the value of the debtors on a stand-alone basis,” the letter from New York-based Quinn Emanuel read.
“WeWork should at least educate itself about that potential and not preclude itself from maximizing value.”
WeWork, which rents out office space on a short-term basis, had criticised Neumann’s leadership and lifestyle in 2019, with the former founder ultimately resigning.
It had been the most valuable startup in the US after being founded in 2010, hitting a peak of US$47 billion, before steadily declining into the tens of millions currently.
Losses had been exacerbated by the pandemic and a subsequent dip in demand for office space since with a restructuring plan filed on Sunday showing WeWork to hold over US$4 billion in secured debt.