Palihapitiya in $4.eight billion SPAC deal for actual property start-up Opendoor
Olivia Michael | CNBC
Chamath Palihapitiya pioneered taking non-public unicorns public by reverse merging them into particular objective acquisition firms — an concept he is referred to as “IPO 2.0.”
After his first iteration of doing so final yr with space-tourism firm Virgin Galactic, he is discovered his subsequent goal: Opendoor, a web-based market for getting and promoting homes.
“These guys are my subsequent 10x concept,” Palihapitiya mentioned in an interview with CNBC, noting the prospect of producing returns value 10 instances the unique funding.
The funding, introduced Tuesday, quantities to greater than $1 billion. Opendoor will obtain $414 million from the capital generated from the April preliminary public providing of his SPAC, Social Capital Hedosophia II. Moreover, a gaggle of buyers, together with Palihapitiya and funds managed by BlackRock, agreed to infuse one other $600 million via a PIPE, or a personal funding in public fairness.
The deal values Opendoor at $4.eight billion…