Shareholders of software infrastructure firm Core Scientific (CORZ) are expected to vote against CoreWeave’s (CRWV) $9 billion acquisition offer at a meeting scheduled for October 30, according to CNBC’s David Faber. This expectation comes from large shareholders and activist investors who believe that the deal undervalues Core Scientific.
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Despite the pushback, CoreWeave CEO Michael Intrator recently told Bloomberg that the company has no intention of changing its offer because the proposed terms are fair and would benefit both companies if approved. Still, investors who oppose the deal argue that Core Scientific is worth more than what CoreWeave is offering.
According to the Financial Times, some shareholders believe the company should be valued closer to $25 per share, or around $11.5 billion, rather than the current $9 billion deal. It is worth noting that under the current terms, Core Scientific shareholders would receive 0.1235 newly issued CoreWeave shares for each CORZ share they own. However, with strong opposition from key investors and CoreWeave refusing to renegotiate, the deal’s outcome remains uncertain.
Which Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that CRWV stock has more room to run than CORZ. In fact, CRWV’s price target of $154.42 per share implies more than 7% upside versus CORZ’s 3% downside.
