Opendoor co-founder and Executive Chairman Keith Rabois. Photo credit: The DEMO Conference, under Creative Commons license

Opendoor, the popular home buying startup, is in talks to go public by merging with Social Capital Hedosophia Holdings Corp. II, a blank-check company, according to a report [paywall] by Bloomberg. According to Bloomberg, the combined company will be valued at $5 billion in the deal. Social Capital II, which raised more than $400 million from its debut on the public markets in April of this year, is said to be looking to even raise more cash to fund an Opendoor merger. Already, Opendoor as a private company is heavily funded, with more than $1.3 billion in equity funding. The company has also raised billions more in debt financing.

Opendoor facilitates relatively quick home sales for sellers and then later sells acquired homes with the hopes of turning a profit. Currently, the company operates across several states in the US. Opendoor, which was founded in 2014, currently has north of 1,000 employees spread across several offices in the US. As of 2018, Opendoor said it bought $3.8 billion worth of homes annually.

Social Capital II, the targeted blank-check company, is the work of venture capitalist Chamath Palihapitiya and longtime investor Ian Osborne. Before its launch, the duo successfully launched a preceding blank-check company that in the end merged with aerospace company Virgin Galactic. That merger has been apparently successful, with Galactic currently (as of writing) sporting a market cap of $4 billion. 

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