It’s official. After reports surfaced last week that Opendoor was in talks with Social Capital Hedosophia Holdings Corp. II, a SPAC led by billionaire investor Chamath Palihapitiya, both parties confirmed the tie-up today.
In a deal that values Opendoor at an enterprise value of $4.8 billion, the property technology company will go public via a merger with Social Capital. The deal will provide up to $1 billion in proceeds to help fund Opendoor’s growth initiatives.
Opendoor is a property technology company that directly buys homes from sellers, makes improvements to the homes, and then resells them.
The convenience afforded to home owners who sell to Opendoor is a quick three-day process of receiving an all-cash offer on their home, according to Palihapitiya, among other things.
Shares of Social Capital Hedosophia Corp. II surged as much as 25% to $16.36 in Tuesday morning trades.
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In an interview with CNBC, Palihapitiya highlighted that real estate is the largest market that has yet to be disrupted by online technologies, and that the COVID-19 pandemic has only heightened the need to move the home buying and selling process online.
Palihapitiya estimated that if Opendoor is able to capture 4% of its target market, that would equate to more than $50 billion in revenue.
Social Capital, Open Door Labs, Inc., Chamath Palihapitiya, Mergers and acquisitions, Special-purpose acquisition company, Publicly listed company, Eric Wu
Actu monde – CA – Social Capital SPAC surges 25% after it confirms tie-up with Opendoor, Chamath Palihapitiya calls it his ‘next big 10x idea’