Adam Neumann says his WeWork bid isn’t dead

WeWork appears ready to emerge from bankruptcy without co-founder Adam Neumann rejoining the fold, but its former executive keeps pounding the drum against the restructuring deal.

Neumann again pushed back on WeWork’s plan to move forward at the Bloomberg Tech Summit in San Francisco. He claimed the bid process “is not over,” despite many indications suggesting otherwise.

Neumann referred to WeWork’s restructuring plan as “definitely unfeasible.” He claimed the company is projecting performance benchmarks that are unrealistic; the company projects occupancy to increase to 85 percent in five years at its locations, but Neumann and others have previously called that unrealistic.

One of Neumann’s most telling comments came when he was asked about if his pursuit of WeWork was a pursuit of redemption. He admitted there was some emotion in play, before adding that he doesn’t make decisions “that way.”

Neumann’s objections to WeWork’s restructuring plan are well known at this point. He offered $650 million to buy his old company, but WeWork is instead being sold to Yardi, which Neumann has said was an inside job.

Neumann also squabbled with WeWork about its alleged unwillingness to enter into a non-disclosure agreement to go ahead with negotiations. He has also claimed WeWork has made false statements against him and his offer to buy the co-working company.

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Neumann was forced out of WeWork in 2019 after a failed initial public offering attempt. WeWork struggled with losses for years and filed for bankruptcy last year. Neumann late last year launched a new company, Flow, focusing on residential apartment management.  

WeWork last month unveiled its agreement to exit bankruptcy. It includes a $337 million capital injection from Yardi Systems and $112 million from existing bondholders. The $450 million investment, subject to court approval, will support its operations after its bankruptcy, according to a company spokesperson.

— Holden Walter-Warner