Public Markets

Opendoor Eyes Public Market Debut Through SPAC Merger

Illustration of M&A block letters.

San Francisco-based unicorn Opendoor, operator of an online marketplace aimed at streamlining the buying and selling of homes, is the latest heavily funded private company to eye a public offering through a merger with a special purpose acquisition company (SPAC).

The company is reportedly in advanced talks to go public through a merger with Social Capital Hedosophia Holdings Corp. II, a SPAC launched by well-known startup investor Chamath Palihapitiya.

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The SPAC is reportedly discussing raising fresh equity to help fund the transaction. Under terms of a potential deal, the combined company would be valued at around $5 billion.

Founded in 2014, Opendoor previously raised about $1.5 billion in known funding, per Crunchbase data. The potential deal comes as SPAC transactions are on the rise, with nearly $36.2 billion in SPAC gross proceeds so far this year—far higher than the $13.6 billion in SPAC proceeds from last year.

Illustration: Dom Guzman

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