Posted in home repair

Home-Flipper Opendoor Going Public in Social Capital Merger

(Bloomberg) — Opendoor is going public through a merger with Social Capital Hedosophia Holdings Corp. II in a deal that gives the property technology startup an enterprise value of $4.8 billion.

The deal will provide as much as $1 billion in cash, including up to $414 million held by Social Capital II, the blank-check company led by Chairman Chamath Palihapitiya, according to a statement on Tuesday that confirmed earlier reporting from Bloomberg.

Social Capital’s shares surged as much as 22% to $15.98 in New York.

SPAC Popularity

Opendoor is the latest startup to go public through a special purpose acquisition company, or SPAC. The investment vehicles have gained popularity this year, offering a faster route for companies seeking to go public without the scrutiny or risks of an initial public offering.

Read more: From Bill Ackman to Billy Beane, Meet the New SPAC Barons

The deal marks the latest milestone

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Posted in home

Home Buyer Opendoor Is Going Public In $4.8 Billion Merger

Opendoor, an online platform that lets homeowners quickly sell their houses, announced on Tuesday that it will go public through a merger with Social Capital Hedosophia Holdings II, a shell company helmed by Chamath Palihapitiya, a venture capitalist and early Facebook executive.

The deal values Opendoor at an enterprise value of $4.8 billion, and will generate up to $1 billion in cash proceeds, the company says. Palihapitiya himself is putting $100 million into the business.

“We founded Opendoor to make it simple and instant to buy and sell a home,” Opendoor’s founder and CEO, Eric Wu, said in a statement. “This is one of many milestones towards our mission.”

Founded in 2014, Opendoor is the dominant player in the “iBuying” space, a term for start-ups that let homeowners rapidly

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Continue Reading Home Buyer Opendoor Is Going Public In $4.8 Billion Merger