Houzz is aiming to go public early next year. online home remodeling platform that capitalized on the boom in renovations during the COVID-19 pandemic, has hired Goldman Sachs to prepare for an IPO. Orlando's stake in Digital World Acquisition Corp, the Miami-based blank-check acquisition firm he is leading, was worth $423 million on Thursday after his deal to merge with Trump Media and Technology Group was announced, according to a regulatory filing and Reuters calculations.Įven hedge funds that invested in the SPAC are set to make five times their investment, according to Reuters calculations.Įlsewhere, my colleagues and I scooped that Houzz Inc, the U.S.
#Houzz ipo 2021 serial
Orlando now stands to make a lot of money (at least on paper), if the deal goes through – the deal has delivered a potential windfall of $420 million for the former finance executive who has been trying for a decade to reinvent himself as a serial dealmaker.
Since the deal was announced, it has won an exuberant endorsement from investors, with shares in the Patrick Orlando SPAC closing up more than 350% on Thursday after rising more than 400% earlier in the day. Trump said his new company would "stand up to Big Tech" companies such as Twitter and Facebook that have barred him from their platforms. President Donald Trump will launch his own social media app, TRUTH Social, through a new company formed by a merger of the Trump Media and Technology Group and a SPAC. If you thought nothing could top the headlines generated by PayPal-Pinterest this week, you would be mistaken – in what could easily turn out to be one of the strangest ever SPAC deals, former U.S. But payments companies and banks are racing to own consumer gateways, and Pinterest has what might be valuable land for PayPal.” The news sent PayPal’s stock down 7%, and in one sense, investors are rightly skeptical: PayPal has thrived on its own since its 2015 spinout from eBay. The $320 billion payments company is mulling nearly a $45 billion bid for the scrapbooking social network. 8.īREAKINGVIEWS had this to say about the potential tie-up – “PayPal’s Pinterest interest displays both greed and fear. The online payments provider hopes to successfully negotiate and announce a deal by the time it reports quarterly earnings on Nov. PayPal has offered $70 per share, mostly in stock, for Pinterest. Acquiring Pinterest would allow PayPal to capture more of that e-commerce growth and diversify its income though advertising revenue. The deal talks come as internet shoppers increasingly buy items they see on social media, often following "influencers" on platforms such as Instagram and TikTok. It would be the biggest acquisition of a social media company, surpassing Microsoft Corp's $26.2 billion purchase of LinkedIn in 2016. Such a combination could herald more financial technology and social media tie-ups in e-ecommerce. Houzz, which has raised over $650 million in funding to date, counts the likes of Sequoia Capital, New Enterprise Associates, GGV Capital and DST Global among its prominent backers.Another action-packed week in the world of corporate M&A – in what could end up being one of the biggest deals of 2021, PayPal has offered to buy digital pinboard site Pinterest for $45 billion, people familiar with the matter have told Reuters. Its business later boomed as more users turned to it. Houzz was forced to lay off 10% of its staff at the onset of the pandemic, citing the impact on small businesses in the home renovation sector that form its core paid-user base. To be sure, a Houzz IPO could face headwinds, as more people return to the office as the pandemic subsides, while soaring inflation makes remodeling more expensive. Pinterest Inc has attracted the acquisition interest of PayPal Holdings Inc, which made a $45 billion offer for the online scrapbook and photo-sharing website, sources said on Wednesday. Houzz is among a spate of internet companies that benefited from people staying at home during the pandemic and shopping online. It offers subscriptions for those projects, and also sells furniture using third-party sellers. Houzz and Goldman Sachs declined to comment.įounded in 2009 by Adi Tatarko and Alon Cohen, Houzz operates a marketplace that is used by home renovation professionals to find home remodeling and improvement projects.
They asked not to be identified because the matter is confidential. The sources cautioned that the timing of the IPO is subject to market conditions.
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