eToro ‘s valuation drops more than 15% after modified SPAC deal
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eToro is a stock exchange established in 2007. This exchange allows users to invest in financial products such as cryptocurrencies, stocks, commodities, etc. In addition, eToro also provides services that automatically copy other people’s trades on its platform. Copy trading is very beneficial for inexperienced new investors or busy people who do not have much time to research the market. eToro is a formidable competitor of Robinhood Markets Inc. eToro has gradually become extremely popular with young investors because of its easy-to-use interface.
Betsy Cohen-backed FinTech Acquisition Corp V has announced that it has revised the terms of its merger proceedings with eToro Israel. FinTech has lowered its valuation of eToro from $10.4 billion to $8.8 billion. In addition, FinTech added that the companies could not meet the agreed mandatory condition before December 31. Therefore the deadline was extended to June 30, 2022. Fintec also added that one of the conditions that could not be met was eToro’s effective submission of filings with the U.S. Securities and Exchange Commission.
The delay in the agreement between the two parties has negatively impacted eToro’s business valuation in the context of the recent explosive SPAC trend. Grab Holdings and BuzzFeed recently merged with SPAC and lost their shares after listing.
Regulatory tightening of the broader blank check market has also stalled some transactions. For example, the trade of sports card company Topps and cannabis producer Parallel.
EToro announced an agreement with the blank-check company in March. The deal has attracted SoftBank’s Vision Fund 2, Fidelity Management & Research Co LLC, and Wellington Management venture capital firms.
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