founder of the bankrupt WeWork network Adam Neumann wants to buy it out – Kommersant

According to a specialized financial publication DealBook, part of The New York Times media group, Adam Neumann, who once founded and headed the WeWork co-working network, wants to buy out the company, which is now in bankruptcy. The publication had at its disposal letter Neumann’s lawyers to the current managers of WeWork, in which he invites them to consider the possibility of buying the company together with the famous investor Daniel Loeb and his hedge fund Third Point.

Coworking service WeWork was founded by Mr. Neumann and his partner Miguel McKelvey in 2010, when they opened an “eco-friendly coworking space” in Brooklyn. In the 2010s, the network began to actively develop not only in the United States, but also in other countries against the backdrop of the fashion for “collaborative consumption” among the millennial generation. By 2019, the company was valued at $47 billion and was preparing for an IPO. However, then the company, which was growing rapidly through borrowed funds and venture capital investments, began to accumulate losses, and Neumann himself could not explain to potential shareholders how and when the company would begin to make a profit.

A significant role in crisis The controversial behavior of Adam Neumann, who abused alcohol and drugs and chose an authoritarian management style, also played a role. Ultimately, Adam Neumann was forced to leave the company, and WeWork itself last year filed bankruptcy application.

Now Adam Neumann intends to return to the company. However, according to his lawyers, the current managers are ignoring his proposals to buy out WeWork.

Evgeny Khvostik