SPAC, led by billionaire investor Chamath Palihipatia in advanced talks to merge with Opendoor, reports

  • Opendoor has held public talks on Thursday through a merger with social capital Hogsorfia Holdings Corp II, a “Blanc Check” company or SPAC led by billionaire investor Chamath Palihapatia.
  • Opendoor is a property technology company that buys homes directly from sellers, makes some improvements to homes, and then remodels them.
  • Although the transaction has not been finalized and the deal may fall apart, Bloomberg said, investors are still bidding for shares of SPAAC, up more than 7% in Friday trading.
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Opendoor, an asset technology company, is in advanced talks to go public through a merger with social capital Hadosoa Holdings Corp II, Bloomberg reported on Thursday.

Social Capital is a “blank check” company, or an SPAC, which has been on the hunt to acquire a technology company since it began trading in April. SPAC is led by billionaire investor Chamath Palihapatia.

This is not the first rodeo of Palihapitia in the SPAC world. Their first discovery was in 2019, when the space exploration company Virgin Galactic went public through a merger with an SPAC led by Palihapitia.

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Opendoor operates a business for Zillow’s relatively new homebuying program. The San Francisco-based firm buys homes directly from sellers, makes minor repairs to homes and then remodels them for profit.

According to its website, some of the benefits to a home-seller include home-selling fees and increased flexibility around move-outs and closing dates.

In its latest funding round in 2019, Opendoor was valued at $ 3.8 billion. According to Bloomberg, Opendoor will be valued at around $ 5 billion with social capital.

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A possible deal with Opendur could be a good time, exposing the housing industry. Since the onset of the COVID-19 epidemic in recent months, the housing industry has seen a boom in business as city dwellers flee to the suburbs after months of orders to stay home.

Bloomberg said the deal was expected to be announced in the coming weeks. Shares of social capital Hedphosia Holdings Corp II rose 7% in Friday’s trade.

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