Proxy advisory firm Institutional Shareholder Services (ISS) has recommended that shareholders vote against CoreWeave’s proposed $9 billion all-stock acquisition of Core Scientific, saying the company has proven its ability to succeed independently.
🔹 Deal Context
- The offer, initially valued at $20.40 per share when announced in July, has lost appeal as CoreWeave’s share price declined, reducing the implied valuation.
- Core Scientific (CORZ) shares rose over 5% in after-hours trading Monday, closing at $18.81, as investors appeared to favor independence.
🔹 Investor Backlash
Early opposition came from Two Seas Capital, which criticized:
- The fixed exchange ratio, leaving shareholders exposed to price swings in CoreWeave stock.
- The sale process and valuation, questioning whether the deal truly maximizes value for Core Scientific investors.
🔹 ISS Viewpoint
ISS noted that Core Scientific has shown “considerable success as a standalone company,” emphasizing its strong execution in the AI-driven infrastructure computing space.
The shareholder vote is set for October 30, a decision that could redefine the future landscape of AI infrastructure and cloud computing alliances.