Billionaire Adam Neumann is aiming to snatch back the reins of the real-estate company WeWork, which he set up back in 2010 and got booted out of in 2019, as per DealBook's report on Tuesday.
According to a letter snagged by Dealbook from Neumann’s advisor, Alex Spiro, Neumann, his startup Flow, and Dan Loeb’s Third Point fund have been showing keen interest since December 2023 to either buy WeWork outright from its bankruptcy or provide some financial aid, known as debtor-in-possession (DIP) financing.
The letter spills the beans that Neumann’s hustle started even before December. He was hustling to secure funding as hefty as $1 billion in October 2022, but the former CEO, Sandeep Mathrani, turned him down flat.
WeWork's advisors weren't too keen on Neumann’s bids initially, but they later proposed he provide DIP financing instead of a regular term sheet. Although not explicitly stated in the letter, it hints at some back-and-forth between WeWork and Neumann's squad, possibly under the cover of a nondisclosure agreement (NDA).
WeWork hit the bankruptcy button in November 2023 after struggling financially for years. Neumann took a step back in 2019 when the company's corporate governance and valuation came under intense investor scrutiny.
Third Point, Neumann, and Spiro are yet to chime in on CNBC's request for comments.
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