Opendoor announces merger with Social Capital Hedosophia Holdings Corp. in bid to go public
“iBuying platform Opendoor said it will merge with Social Capital Hedosophia Holdings Corp. II. to become a public company using the special purchase acquisition company in a deal that values Opendoor at $4.8 billion and provides it with up to $1 billion in cash proceeds.
The transaction announced on Tuesday is also supported by a $600 million so-called private investment in public equity, or PIPE, at $10 per share, with $200 million from entities affiliated with Social Capital, including $100 million from Chamath Palihapitiya, founder and CEO of Social Equity, $58 million from Hedosophia, and the remainder from existing Opendoor shareholders, Access Industries and Lennar, along with Opendoor management, the release said.
The company said the transaction will allow Opendoor to continue to invest in growth, market expansion and new products to accelerate its overall plan to become a digital one-stop-shop for homeowners.”
If you get a chance listen to their investor presentation, which really gives you a good perspective of how Opendoor perceives the market.
Now that Opendoor is going to have access to capital from the public markets this battle between Zillow and Opendoor is going to have massive (and disruptive) benefits.
We are going to see a lot of innovation take place due to their competition and that is going to be great for consumers and I think real estate as a whole.
