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Adam Neumann’s bid to buy WeWork failed. Will he now try to compete with it?

Adam Neumann’s bid to buy back WeWork essentially ended this week. A bankruptcy court on Monday approved a deal that will go through We work debt-free. Thanks to $450 million in financing, the company could complete its restructuring and emerge from bankruptcy by the end of May following a vote on the deal largely provided from WeWork creditor and real estate technology provider Yardi Systems.

This deal would eliminate $4 billion in debt and close the door on Neumann. However, he persistently tried to buy the company he co-founded was later evicted by investors, offer more than $500 million and then promise to outperform every other offer 10 percent.

A spokesman for Neumann did not comment on whether he would pursue the purchase of WeWork or what it means for Flow’s future. Neumann’s new company which aims to transform the residential rental experience.

“After weeks of misleading the court, WeWork finally admitted that it is trying to sell the company to a group led by Yardi for far less than we continue to suggest. Therefore, we expect that there will be strong objections to the confirmation of this plan,” said Susheel Kirpalani, a lawyer for Flow.

WeWork is ready to move on from the offer. “Over the last six months, we have worked extremely hard to develop a plan for a reorganized WeWork that is better capitalized, more operationally efficient, and positioned for further investment in our products and services and a return to long-term growth,” WeWork said CEO David Tolley said in a statement announcing the plan.

In 2022, Neumann announced that he was working on Flow and received $350 million in backing from venture capital firm Andreessen Horowitz, known as a16z. What exactly the startup would do wasn’t immediately clear, but Neumann said it would take the experience of renting an apartment “to a higher level.”

So far it’s been about rebranding homes, increasing amenities and adding new building management technologies developed by Flow. The company started Flowing buildings in Fort Lauderdale And Miami rebranded in April existing apartments that it has previously purchased under the flow name. Available one-bedroom apartments in Fort Lauderdale, Florida start at around $2,500 per month and from $2,900 in Miami.

Flow owns a total of six buildings, including some in Nashville and Atlanta, that have not been rebranded as Flow. Bloomberg reported in March that Flow is planning a $300 million project in downtown Miami that will include residential, retail and workspace. Neumann had previously tried to venture into residential construction We livea co-living idea related to WeWork that ultimately failed.

Neumann said flow would either “compete or be partners” with WeWork as more people work from home. With a partnership now looking unlikely, it appears the two could be competing.

“Adam can choose to be a CEO in either wartime or peacetime,” says Eric Koester, a professor of innovation and entrepreneurship at Georgetown University. The path to war would be to acquire WeWork and quickly build some kind of competitor. The peacetime route, says Koester, would be based on the differentiation of flow.

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