The way I think about it is that
$IPOB's current market cap represents the value of the SPAC's stake in Opendoor.
$IPOB is providing βup toβ $414 million in cash as part of the deal that values Opendoor at $4.8bn ($6.2bn equity - $1.5bn cash). So the market is valuing a ~7% stake in Opendoor at ~$750mm (
$IPOB's current market cap, implying that the market thinks Opendoor is worth more than the valuation agreed upon in the deal)...this ownership stake is just a rough estimate--would have to look at the company filings to see exactly how the deal is structured. And existing OpenDoor shareholders are rolling their equity into the new company. After the reverse merger, Opendoor and
$IPOB will combine into a publicly traded operating company, and the market cap will simply equal Opendoor's market cap once existing Opendoor shares are included in the shares outstanding number (market cap = shares outstanding x market price)--right now, only the SPAC's shares are included in the market cap calculation.