The merger with Palihapitiya’s SPAC, Social Capital Hedosophia Corp V, will value SoFi at $8.65b. SoFi was last valued at $5.7b in private markets, and has raised cash from venture capital giants such as SoftBank and Peter Thiel. Shares of the SPAC buying SoFi rose 29% in Thursday trading after the announcement.
“What I did was systematically try to future out what was broken in banking, and try to figure out which company was the best representative of the solution people wanted,” Palihapitiya, founder and CEO of Social Capital Hedosophia V, told CNBC’s Halftime Report Thursday. “Sofi was the top of the list when I looked across all the companies.”