Key Takeaways
- Opendoor Technologies names former Shopify CFO Kaz Nejatian to be new CEO.
- The online real estate platform also brought back Co-Founders Keith Rabois and Eric Wu as board members, with Rabois as Chair.
- Rabois’ venture capital firm and Wu are investing $40 million in the company.
Opendoor Technologies (OPEN) shares soared 50% Thursday, a day after the online real-estate platform named a new CEO, brought back its founders to be on the board, and got a new infusion of cash.
The company announced that former Shopify (SHOP) COO Kaz Nejatian would be taking over as CEO, replacing Carrie Wheeler, who stepped down last month after facing pressure from shareholders as the company struggled in its turnaround efforts.
In addition, Opendoor said co-founders Keith Rabois and Eric Wu were returning to the Board of Directors, with Rabois becoming Chairman. Lead Independent Director Eric Feder explained that the pair “will inject the ‘founder DNA’ and energy at a pivotal moment for Opendoor.”
Along with their new positions, Rabois’ venture capital firm, Khosla Ventures, and Wu have struck securities purchase agreements with Opendoor to invest $40 million in the firm. Opendoor noted that it planned to use the money “to fund continued investment in the business.”
Opendoor Technologies shares have surged since July as retail investors have piled into the meme stock. They ended June trading at $0.53 each but now are approaching $9 with today’s gains.
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