eToro Misses Deadline to Close SPAC Deal for Nasdaq Listing

Israel-headquartered broker, eToro has likely abandoned its merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term with the blank-check firm, FinTech Acquisition Corp V (Nasdaq: FTCV), as it crossed the deadline of June 30 for sealing the deal.

Additionally, the Information cited an anonymous source to report on Thursday that the broker is planning to abandon the deal. Finance Magnates reached out to eToro for official confirmation as a spokesperson said: "We will be sharing an update in the coming days."

A Broken Dream of Public Listing?

eToro, which has made its name with copy trading services, is a popular retail trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term platform with a global presence. In addition, it became popular by offering cryptocurrency services. The number of active customers on the platform doubled in 2021 to 2.4 million.

The broker confirmed its deal with the Betsy Cohen-backed blank-check company in March 2021 that would allow it to list on the American stock exchange, Nasdaq. It initially missed its 2021 deadline to complete the merger, which was then extended to June 30, 2022.

Further, the slowdown in retail trading demand from the pandemic-induced peak impacted the valuation of brokers, including eToro. Initially, the valuation of the merged eToro and SPAC was determined to be $10.4 billion, putting the implied enterprise value for eToro at $9.6 billion. However, the SPAC partner later confirmed a cut of more than 15 percent in the valuation of the broker to $8.8 billion.

In May, an Israeli media company reported that eToro is considering raising between $800 million and $1 billion in a private equity round before its public listing. The funding is said to be coming at a valuation of around $5 billion and $6 billion, which is much less than the estimated valuation for the SPAC merger.

However, eToro at that time declined to confirm the funding or the valuation cut, calling it “market rumors.”