• Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
Cartographeum
No Result
View All Result

Home Buyer Opendoor Is Going Public In $4.8 Billion Merger

Tomi Mccarthy by Tomi Mccarthy
September 15, 2020
Home Real Estate
Share on FacebookShare on Twitter

Eric Wu, CEO of OpenDoor, speaks at a conference in 2018. (Photo by David Paul Morris/Bloomberg)
© 2018 Bloomberg Finance LP
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 sell their homes to the company, which then lists it on its platform—taking a cut from both sides of the transaction. Opendoor utilizes data analysis to determine its pricing, a central element of its business plan; if it overpays for a home upfront, it could take a loss. If it tries to underpay, sellers will look elsewhere.
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 SoftBank in 2018.
Opendoor 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 laid off a third of its employees.

Opendoor also faces increased competition, from Zillow
Z
, Offerpad, Redfin
RDFN
and others. Even still, iBuying comprises just 0.5% of the $1.6 trillion home-buying market, according to The Real Deal.
Social Capital Hedosophia Holdings II was formed earlier this year as a blank-check firm—also known as a special purpose acquisition company, or SPAC. In simple terms, it went public as a shell company, then scouted the market for an attractive tech start-up with which to merge.
Last year, Social Capital Hedosophia’s first SPAC helped take public Richard Branson’s rocket company, Virgin Galactic
SPCE
. Its shares have since ticked up.
So far, the market is reacting positively to its second major deal, with Opendoor. As of 9:50 am eastern time on Tuesday, the SPAC’s stock is up 16%.

Tags: ipoopendoorpublicreal estate
Tomi Mccarthy

Tomi Mccarthy

Next Post
Forecasts of heavy rains raise concerns about kharif crops

Forecasts of heavy rains raise concerns about kharif crops

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

The System Is Untenable For The Working Poor

The System Is Untenable For The Working Poor

September 1, 2020
AMD Ryzen 5000 Series Desktop CPUs Announced, Available November 5

AMD Ryzen 5000 Series Desktop CPUs Announced, Available November 5

October 8, 2020

Trending.

Understanding Emergency Rental Assistance For Landlords And Tenants

Understanding Emergency Rental Assistance For Landlords And Tenants

January 27, 2021
Call of the mall – The Hindu

Call of the mall – The Hindu

October 16, 2020
Rupee slumps 23 paise, settles below 74/USD level

Rupee slumps 23 paise, settles below 74/USD level

November 1, 2020
Webinar on weather and its impact on business on November 19

Webinar on weather and its impact on business on November 19

November 16, 2020
Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

November 1, 2020

Cartographeum brings you the latest information about Tech,Real Estate & Business.

Follow Us

Categories

  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
  • Uncategorized

Tags

Amazon Apple Watch 2 Bombay stock exchange BSE Business Buying Guides china closing trade coronavirus Covid COVID-19 currency dollar rate economy Finance Ministry foreign exchange forex gold india indian economy Indian stock market Industry iOS 10 lockdown luxury homes market and exchange markets nifty Nirmala Sitharaman NSE oil pandemic Playstation 4 Pro rbi real estate Reserve Bank of India rupee rupee rate Rupee value rupee vs dollar sensex Sillicon Valley stock exchange Stocks USD

Recent News

What The New 3-2-2 Work Week Will Mean For Commercial Real Estate

What The New 3-2-2 Work Week Will Mean For Commercial Real Estate

March 2, 2021
Seven Top Tile Trends For 2021

Seven Top Tile Trends For 2021

March 2, 2021
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Review
  • Computers
  • Gear

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.