Disgraced WeWork founder Adam Neumann finally gives up on trying to buy the company back

Ousted WeWork founder Adam Neumann has ended his bid to buy back the company after it filed for bankruptcy in November. 

The 45-year-old claimed the coworking business has chosen to emerge from bankruptcy with an 'unrealistic' plan, according to The New York Times DealBook. 

Neumann's new real estate venture, Flow Global, submitted a bid of more than $500 million to take over WeWork and its assets earlier this year.

'For several months, we tried to work constructively with WeWork to create a strategy that would allow it to thrive,' Neumann said in his statement.

'Instead, the company looks to be emerging from bankruptcy with a plan that appears unrealistic and unlikely to succeed.'

WeWork, once valued as much as $47 billion on paper, ousted Neumann as CEO in 2019 amid scathing criticism of his leadership and 'tequila-fueled' lifestyle. 

He did not immediately respond to a request for comment and WeWork, once privately valued at $47 billion, declined to provide a statement.

He previously said WeWork has refused to engage in talks, instead seeking to use its bankruptcy court case to 'rubber-stamp' a deal that would turn over control of the company to 'hand-picked buyers.'

Neumann partnered with hedge funder Dan Loeb in his push to retake the company but accused WeWork of stonewalling the bid, according to a legal letter. 

'We write to express our dismay with WeWork's lack of engagement even to provide information to my clients in what is intended to be a value-maximizing transaction for all stakeholders,' wrote Neumann's attorney Alex Spiro.

Founded in 2010, WeWork aimed to revolutionize the office market by leasing large properties on longer leases and then renting them to multiple smaller businesses seeking flexible workspaces for shorter arrangements.

Initially viewed as a disruptor, with a business model unhindered by property ownership, WeWork expanded rapidly.

But the company's cash burn meant it could not keep up with debt payments.

With over $13 billion in long-term leases, it filed for Chapter 11 bankruptcy protection in 2023 to renegotiate these agreements.

Neumann was ousted in 2019 following a failed attempt to take the company public amidst growing investor concerns about losses and his leadership.

Key financial banker SoftBank initially offered Neumann a severance package valued at $1.7 billion, but reneged on the deal and ended up paying him about $445 million in cash and stock, according to the Wall Street Journal.

After a public listing in 2021, WeWork racked up losses on its long-term lease obligations as more people began working from home during the pandemic and demand for office space plunged.

Shortly before WeWork filed for bankruptcy in November, Neumann said in a statement, 'I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.'

WeWork has been on a spree to rationalize its real estate portfolio to cut down on rent obligations.

Last week, it said it has determined a path forward at over 97 percent of its wholly-owned lease portfolio and expects to reduce total rent commitments by over $11 billion.