Adam Neumann needs to purchase real-estate firm WeWork, the corporate he co-founded in 2010 and that ousted him 9 years later, out of chapter citing the help of “well-known capital sources” together with Dan Loeb’s Third Point. But the hedge fund instructed CNBC that it had not dedicated any financing and that discussions with Neumann have been “preliminary.”
DealBook first reported information of Neumann’s bid on Tuesday, citing a letter despatched by Neumann’s counsel.
“Third Point has had only preliminary conversations with Flow and Adam Neumann about their ideas for WeWork, and has not made a commitment to participate in any transaction,” the hedge fund instructed CNBC.
Neumann and his startup Flow had “consistently expressed” a “sincere interest” since December 2023 to purchase WeWork and its leases out of chapter or present debtor-in-possession, or DIP, financing, in line with a letter obtained by Dealbook from Neumann’s counsel, Alex Spiro.
“WeWork is an extraordinary company. As such, we receive expressions of interest from external parties on a regular basis. We and our advisors always review those approaches with a view to acting in the best interests of the company,” a WeWork spokesperson instructed CNBC.
Those efforts have stretched even additional again than December, in line with the letter. Neumann had tried to rearrange financing of as much as $1 billion in October 2022 however was rebuffed by former CEO Sandeep Mathrani.
WeWork advisors resisted Neumann’s efforts however finally recommended that Neumann present DIP financing as a substitute of a time period sheet, in line with the letter. It was not instantly clear from the letter if WeWork and Neumann’s crew had signed an NDA, though the letter says that the 2 sides had been exchanging mark-ups on one.
WeWork filed for chapter in November 2023 after years of monetary struggles. Neumann stepped down in 2019 as the corporate confronted mounting investor issues over its company governance and valuation.
Neumann and Spiro didn’t reply to CNBC’s request for remark.
“We continue to believe that the work we are currently doing – addressing our unsustainable rent expenses and restructuring our business – will ensure WeWork is best positioned as an independent, valuable, financially strong and sustainable company long into the future,” a WeWork spokesperson added.
The Financial Times first reported the small print of Third Point’s engagement with Neumann.
https://www.cnbc.com/2024/02/06/adam-neumann-is-trying-to-buy-bankrupt-wework-dealbook.html
