Ex-Zillow CEO Spencer Rascoff leads SPAC deal to acquire Offerpad, a rival to his former employer
“It’s a deal that pits Rascoff in an intriguing match-up with his former colleagues at Zillow, including co-founders Rich Barton and Lloyd Frink. Rascoff’s SPAC — operating under the name Supernova Partners Acquisition Company — is acquiring Offerpad in a deal that will value the Chandler, Ariz.-based company at $3 billion and bring in an additional $650 million in gross proceeds to a real estate technology provider that powers the quick selling and buying of homes.
Offerpad plans to trade on the New York Stock Exchange under the ticker symbol OPAD.”
Real estate is hot. If you don’t think so, look no further than this deal. Offerpad is in 3rd place (by a country mile) in the iBuying space. I love this quote from Spencer,
“The real competition for Offerpad isn’t Zillow or Opendoor, it’s the fact that 99.5% of the time people sell their home the old analog way.”
He’s exactly right. But how much is that percentage going to shrink, and it doesn’t have to shrink that much to have a huge company. I have two predictions about Mr. Rascoff’s recent moves.
Pacaso will be acquired by AirBnB, and Offerpad will be acquired by Zillow. Wall Street loves a story.
