Savor the irony: A blank check company started by Spencer Rascoff is bringing an iBuyer, Offerpad, to the public.
Offerpad, a Phoenix-based company, said Thursday it was bought by a special-purpose acquisition company controlled by Rascoff, called Supernova Partner Acquisition Company.
Supernova partners will list Offerpad on the New York Stock Exchange, according to a Press release. The deal will provide iBuyer with “up to $ 650 million in gross cash proceeds,” according to the statement.
Offerpad will also receive a commitment of $ 200 million from private equity investors such as BlackRock and Zimmer Partners. And the deal promises $ 50 million from “Supernova affiliates” and “up to $ 403 million in cash in Supernova’s trust account.”
Seven-year-old Offerpad, founded by the company’s current CEO Brian Bair, describes itself as a lean operation that seeks to accelerate growth.
Real estate agents and OA: the great collaboration
Technology has given consumers the power to choose and has sped up the entire real estate buying process. The successful agents, brokers, and loan officers of the future will rely heavily on technology to find, nurture, and interact with buyers and sellers, while also playing an increasingly important role as personal advisers.
Presented by: Propertybase
“Offerpad’s experienced real estate and technology leadership team created a highly efficient buying business, while raising less capital than the competition,” the statement read. CrunchBase data says Offerpad raised $ 155 million before Thursday’s announcement.
Rascoff is the co-founder of Zillow, but he left as the company’s CEO in early 2019, replaced by another company co-founder, Rich Barton.
One informed reason because Rascoff’s output was – brace yourself – he didn’t do enough to grow Zillow’s iBuying program, Zillow offers.
Under Barton, Zillow has swung hard to iBuying. He has said that not doing so would represent an “existential crisis.” The majority of the company’s income and expenses in 2020 came from the Zillow Offer.
Since leaving Zillow several years ago, Rascoff has had multiple business ventures, including starting a Los Angeles-based journalism company that covers technology, dot.LA.
It also launched two other special-purpose takeover companies, neither of which has found a partner to go public.
Offerpad, meanwhile, plans to go public less than a year after OpenDoor, another instant home buying platform, went public on Nasdaq.