Adam Neumann, co-founder of the once high-flying office-sharing startup WeWork, has placed a bid of more than $500 million to repurchase the company, Reuters reported Tuesday.
Neumann previously led WeWork to a peak valuation of $47 billion before a series of strategic missteps and personal controversies led to his departure.
Details regarding the financing of Neumann's offer remain unclear, as discussions are ongoing and confidential. Under Neumann's leadership, WeWork became the most highly valued startup in the United States. However, his aggressive expansion strategy and unconventional conduct contributed to a failed attempt at an initial public offering (IPO) in 2019.
Reuters last month reported Neumann's interest in acquiring WeWork, which sought bankruptcy protection in November, with backing from SoftBank.
"WeWork is an extraordinary company and it's no surprise we receive expressions of interest from third parties on a regular basis," the company said in a statement.
"Our board and our advisors review those approaches in the ordinary course, to ensure we always act in the best long-term interests of the company," it added.
In response, WeWork said it remains focused on the ongoing restructuring in a bid to “emerge from Chapter 11 in the second quarter as a financially strong and profitable company".
Neumann, through his attorneys, has informed WeWork of his intentions to explore a collective bid for the company, in partnership with Daniel Loeb's Third Point hedge fund and additional investors.
However, Third Point clarified to Reuters that it had only engaged in preliminary discussions with Neumann and his real estate firm, Flow, without committing any funds to the bid.