Acquisition
Two Seas Capital Opposes Core Scientific-CoreWeave Merger, Calls Deal Undervalued, Risky For Shareholders

**Two Seas Capital Fights $5.1B Core Scientific Acquisition**
What’s Happening?
Two Seas Capital, the largest shareholder of Core Scientific Inc, is vocal in its opposition to the company’s pending $5.1 billion all-stock acquisition by CoreWeave. The investor claims the deal undervalues Core Scientific and poses unnecessary risks for shareholders. This battle highlights growing concerns over fair valuation in tech mergers and acquisitions.
Where Is It Happening?
The dispute is unfolding between Two Seas Capital and Core Scientific Inc, with implications for shareholders and the broader tech industry.
When Did It Take Place?
Two Seas Capital publicly announced its opposition on Friday, escalating the debate over the acquisition’s terms.
How Is It Unfolding?
– Two Seas Capital argues the deal significantly undervalues Core Scientific’s assets.
– The investor highlights structural flaws in the acquisition agreement.
– CoreWeave maintains the deal is fair and beneficial for both companies.
– Shareholders are now at the center of this high-stakes wrestling match.
Quick Breakdown
– Two Seas Capital is the largest active shareholder of Core Scientific.
– The proposed acquisition is valued at $5.1 billion in an all-stock deal.
– Core Scientific shares have surged following the announcement.
– Two Seas Capital aims to block the deal, calling it risky and undervalued.
Key Takeaways
The conflict between Two Seas Capital and Core Scientific over the CoreWeave acquisition showcases the tension between shareholders and management in corporate mergers. While CoreWeave positions the deal as a strategic move to expand capabilities, Two Seas Capital sees it as a risky bet that doesn’t reflect Core Scientific’s true value. This clash underscores the importance of shareholder activism in ensuring fair deals and corporate accountability.
This acquisition offers unprecedented growth potential, but it must be done right. Undervaluing the company is not the way to secure long-term success.
– Alexei Andreev, Two Seas Capital
Final Thought
The fight over Core Scientific’s acquisition by CoreWeave is not just about dollars and cents—it’s a battle for the future of the company. Two Seas Capital’s opposition highlights a critical question: is the proposed deal a bold leap forward or a risky gamble that leaves shareholders shortchanged?
Source & Credit: https://www.benzinga.com/m-a/25/08/47000896/two-seas-capital-opposes-core-scientific-coreweave-merger-calls-deal-undervalued-risky-for-shareholders
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