With the deadline approaching for the completion of the SPAC merger of Israeli online trading platform eToro, market sources believe that it is increasingly likely that the merger will be canceled, Globes reports.
eToro first announced its SPAC merger with Betsy Cohen’s FinTech Acquisition Corp. V in March 2021 at a company valuation of $10.4 billion. Following declines in the market in the final quarter of 2021, eToro announced in December 2021 that the deadline for completing the deal had been extended to June 2022 and its valuation cut to $8.8 billion. In the current market climate on Wall Street, it is difficult to see eToro completing the merger at anything like such an amount.
Robinhood, eToro’s famous rival in the social investment network trading platform sector, has seen its share price fall 73.5% since its IPO last summer and is 86% down since its peak in August, and 43% down since the start of 2022, giving it a market cap of $8.4 billion. Read more.
