Adam Neumann, the founder of WeWork, has decided to abandon his plans to reacquire the company. In a statement, he expressed his doubts about the company’s new direction and stated that they had tried to work with WeWork to create a successful strategy, but he now believes the plan is unrealistic and unlikely to succeed.
Neumann had previously submitted a bid of around $650 million for WeWork, but the company chose a different deal that included $450 million in equity funding and plans to erase billions in debt. The New York Times’ Dealbook was the first to report on Neumann’s decision to walk away from WeWork.
WeWork, once valued at $47 billion, had been propelled by Neumann’s grand vision of changing the world with more than just shared office space. However, the company’s IPO failure in 2019 led to Neumann’s departure as its value plummeted.
In November 2023, WeWork filed for bankruptcy due to weakened office demand during the pandemic. Despite this setback, Neumann remains focused on his new venture and continues to explore opportunities in the real estate market. He founded Flow, a rental-housing company with backing from Andreessen Horowitz, through which he recently attempted to reacquire WeWork.
