Adam Newman, who founded flexible workspace provider WeWork in 2010, gained notoriety. got down Nine years later, it is trying to buy the company out of bankruptcy, according to multiple reports.
in a letter Published by the New York Times today, Adam Newman, attorneys for his latest startup Flow Global Holdings LLC and “their affiliates,” wrote that they were disappointed by “WeWork's lack of engagement to even provide information.” An offer to buy a company. The letter revealed that Newman, Flow and affiliates partnered with investors such as Don Loeb's hedge fund Third Point and “others.”
Newman's attorneys claim they had “previously worked to arrange up to $1 billion in financing to stabilize WeWork in October 2022, before the meeting (while participants were literally on a plane ride), the former CEO shut down that process without explanation . . .”
WeWork, which was once valued at $47 billion, Filed bankruptcy Last November. The company listed more than $18.6 billion in debt during a spectacular fallout for the once high-flying startup that had raised more than $22 billion from investors like SoftBank, BlackRock and Goldman Sachs. It has struggled over the years with fallout from a period of aggressive growth and global expansion, resulting in a portfolio of several weak properties.
When asked about Newman's buyback effort, WeWork told TechCrunch today: “WeWork is an extraordinary company. Also, we regularly receive expressions of interest from external parties. We and our advisors always review those policies with the best interests of the company in mind. We believe that the work we are doing now – addressing our unsustainable rent costs and restructuring our business – will ensure that WeWork is best positioned to be an independent, valuable, financially strong and sustainable company long into the future.
Meanwhile, the third point told the Financial Times It “has only held preliminary conversations with Flo (Newman's property company) and Adam Newman about their ideas for WeWork and has not committed to engaging in any transaction.”
Notably, Newman's new venture, Flow, is backed by the likes of venture firm Andreessen Horowitz (a16z). In August 2022, the outfit received its largest personal check, at $350 million, focused on rentals from Newman's residential real estate company. So if Flow is successful in its bid to acquire WeWork, it would mean a16z would become a much larger shareholder in the company.