Digital real estate firm Opendoor announces merger with Social Capital Hedosophia

Opendoor has reinvented how people buy and sell a home with its simple, digital and on-demand experience

Opendoor, a leading digital platform for residential real estate, which has reinvented how people buy and sell a home, has just announced plans to become publicly-traded via a merger with Social Capital Hedosophia.

The transaction will enable Opendoor to continue to invest in growth, market expansion and new products that will accelerate the company’s plan to become a digital one-stop shop for homeowners.

The transaction values Opendoor at an enterprise value of $4.8 billion, and is expected to provide up to $1 billion in cash proceeds, including a fully committed PIPE of $600 million and up to $414 million of cash held in the trust account of Social Capital Hedosophia Holdings Corp.

Insiders are making a significant commitment of $200 million of the $600 million PIPE. This $200 million commitment includes $100 million from Chamath Palihapitiya, Founder and CEO of SCH, $58 million from Hedosophia, with the remainder invested by existing Opendoor shareholders, Access Industries and Lennar, along with Opendoor management.

Hundred percent of the cash proceeds will be retained by Opendoor, with existing shareholders of Opendoor rolling 100 percent of their equity into the combined company

Founded in 2014, Opendoor has served over 80,000 customers and sold over $10 billion of homes. In 2019, the company sold more than 18,000 homes, generating $4.7 billion in revenue.

Residential real estate remains the largest, undisrupted market in the U.S. with $1.6 trillion in annual home sales and less than one percent online penetration.

Opendoor currently operates in 21 markets across the US.


For more information, please visit www.opendoor.com.

Photo by Patrick Perkins on Unsplash // Image used for representational purposes only

Subscribe

Related articles

MetaComputers NFTs: Pioneering a New Era in Digital Collectibles on ICP

MetaComputers is set to revolutionize the world of non-fungible...

Wealthy Indians Embrace Bitcoin ETFs Through Remittance Quotas

Despite cautionary statements from India's central bank likening crypto...

Hampton Hotel Tokenizes Slice for Investors

Investors have a unique opportunity on the horizon: owning...

NASA’s Lunar Leap: A VR Metaverse for Astronaut Training

As humanity inches closer to establishing a presence on...

What Are Runes? Bitcoin’s New Alphabet of Opportunity

As the Bitcoin community braces for the much-anticipated halving...

LEAVE A REPLY

Please enter your comment!
Please enter your name here