Apr 30, 2024 - Business

WeWork strikes deal to exit bankruptcy, without Adam Neumann

An illustration of a sinking WeWork being thrown a lifeline.

Illustration: Aïda Amer/Axios

WeWork has reached a $450 million restructuring deal that would help the co-working space operator emerge from Chapter 11 bankruptcy protection by the end of May.

Why it matters: Company co-founder and former CEO Adam Neumann is not involved, despite having wanted to buy back his former company.

  • Neumann's $650 million buyback offer was via Flow, an apartment rental startup he launched with big backing from Andreessen Horowitz.

Deal details: Yardi Systems, a property management software provider and WeWork service partner, would become the company's new majority owner with around a 60% stake.

  • Longtime WeWork backer SoftBank also is involved in the deal, which would eliminate WeWork's $4 billion in debt.

The bottom line: The bankruptcy court judge told Neumann's attorneys that his effort was largely irrelevant if he wasn't first willing to pay off the $4 billion debt load.

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