Home Buyer Opendoor Is Going Public In $4.8 Billion Merger

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Home buyer Opendoor is officially going public in a $4.8 billion merger by Noah_Kirsch

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.”, Opendoor is the dominant player in the “iBuying” space, a term for start-ups that let homeowners rapidly sell their homes to the company, which then lists it on its platform—taking a cut from both sides of the transaction.

The firm’s valuation has soared in recent years—it was most recently pegged at $3.8 billion in 2019—helped along by a $400 million infusion from SoftBankOpendoor generated $4.7 billion in revenue last year on 18,000 home sales across 21 markets. Still, the company is operating at a substantial loss. In April, it

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Noah_Kirsch Ifb

Noah_Kirsch This just gets dumber by the minute.

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