Data-center infrastructure provider Core Scientific (CORZ) says that its shareholders have rejected a takeover offer from CoreWeave (CRWV) and that the proposed merger has now been terminated.
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Artificial intelligence (AI) cloud infrastructure company CoreWeave had offered to acquire Core Scientific in an all-stock deal worth $9 billion. Shareholders of Core Scientific would have received 0.1235 CoreWeave shares for each share they held.
At the time the takeover was announced in July, the offer from CoreWeave implied a $20.40 per share valuation and a 66% premium to Core Scientific’s stock price. This was the second time that CoreWeave made a bid for Core Scientific, and the second time that CORZ shareholders rejected an unsolicited takeover offer from CoreWeave.
Haggling Over Price
The latest merger attempt had drawn criticism from several large Core Scientific shareholders, including Two Seas Capital, which filed a proxy in opposition to the merger arguing that the price offered was too low and that the all-stock deal was structured with too much uncertainty embedded in it.
For its part, CoreWeave has refused to increase its offer price and said that it was willing to walk away from the deal. “We respect the decision of Core Scientific’s stockholders regarding our previously announced merger agreement,” said CoreWeave in a written statement.
Is CORZ Stock a Buy?
Core Scientific’s stock has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 12 Buy and four Hold recommendations issued in the last three months. The average CORZ price target of $23.79 implies 10.83% upside from current levels.
