Shares in the meme stock were in the red in pre-market trading after skyrocketing 78% higher on Thursday after it named Shopify executive Kaz Nejatian as CEO and co-founder Keith Rabois as chairman.
“Literally there was only one choice for the job: Kaz. I am thrilled that he will be serving as CEO of Opendoor (OPEN),” Rabois said. “He is a proven executive with a founder's brain. He is the right leader to unlock Opendoor's unique data and assets as we build on Opendoor's original mission, now enhanced as an AI-first company.”
Opendoor's (OPEN) stock hit a 52-week high, with shares up more than 500% year-to-date. The company's rally follows a rough start earlier in the year, when shares briefly traded below $1, putting the company at risk of being delisted from the Nasdaq (^IXIC).
The recent leadership changes come on the heels of former CEO Carrie Wheeler's resignation last month. Wheeler stepped down following intense pressure from investors, including Rabois and hedge fund manager Eric Jackson. Jackson, a key figure in the stock's resurgence, has been vocal about the company's potential and its direction under new leadership.
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Opendoor (OPEN), which went public through a special purpose acquisition company (SPAC) in 2020, has focused on disrupting the real estate market by using technology to buy and sell homes, generating profits by pocketing the difference. Nejatian, now at the helm, has expressed his intention to revolutionise the home-buying process, making it “radically simpler, faster and more certain” with the help of artificial intelligence.
Shares in Warner Bros Discovery (WBD) were 4% higher ahead of the US opening bell, after climbing 29% in Thursday's session, fuelled by reports that Paramount Skydance (PSKY) is preparing a takeover offer.
According to a Wall Street Journal report, Paramount (PSKY) is planning a majority cash bid for WBD (WBD), with the offer reportedly being backed by the Ellison family. The deal, if it materialises, would mark a major shake-up in the US entertainment and media industry, combining some of the most iconic brands across TV, cinema, and news for the first time.
A merger between Paramount (PSKY) and Warner Bros Discovery (WBD) would unite an large portfolio of assets, including Warner Bros movie studios, CNN, the DC Comics franchise, and TV networks such as HBO, among others. Paramount, in turn, boasts its own properties, such as Paramount Pictures, CBS in the US, Channel 5 in the UK, and popular networks like Comedy Central and MTV.
