On Thursday, December 17, 2020, Social Capital Hedosophia (NYSE:IPOB) shareholders have approved the proposed merger with a San Francisco-based online real estate company, paving the way for Opendoor to become a public company.
Social Capital Hedosophia is a publicly traded SPAC (special purpose acquisition company) listed on the NYSE and backed by Virgin Galactic Chairman Chamath Palihapitiya.
Big News: $IPOB is merging with @Opendoor and will take them public. More than $1B is being invested to help Opendoor build a legacy company.— Chamath Palihapitiya (@chamath) September 15, 2020
This is my next big 10x idea (memo attached).
Tune into @SquawkCNBC today at 8am ET to hear more.
Opendoor is SoftBank-backed home-selling platform and following this merger shareholders of IPOB will hold only 6.6% of Opendoor.
Existing shareholders are keeping roughly 79% ownership. Post-merger, there should be about 630 million shares outstanding.source
While Opendoor is a leader in this field so far, it is likely that it won’t have the niche for itself. Zillow (NASDAQ:ZG),among others, is moving aggressively into the space and Redfin introduced Redfin Direct in 2019.
IPOB stock closed with a significant loss (-7.93%) on Wednesday in the final minutes of the trading day but bounced back on Thursday. Following the merger ticker will change from IPOB to OPEN and will start trading as such on Monday.