Some inside sources have shared an alarming piece of information in regards to eToro. They have claimed that eToro has decided not to proceed with the merger with SPAC.

eToro is one of the largest online brokerages known for offering stock and cryptocurrency trading services. The particular trading service provider is based in Israel but provides services all over the world.

It had been revealed by eToro officials that the brokerage will be proceeding with a merger with a SPAC. Following the merger, eToro will proceed with a public listing that the potential investors of eToro had been anxiously waiting for.

Details Surrounding the Merger

More information surrounding the matter reveals that the deal had been set to take place on Thursday. The completion of the deal would see eToro merge with FinTech Acquisition Corp. V, which is a special purpose acquisition company (SPAC).

The person that was backing the merger between eToro and the SPAC was Betsy Cohen, one of the major banking entrepreneurs.

eToro has not denied any claims made about dropping the idea of the merger but it has not confirmed them either. It is some sort of confirmation that eToro has indeed proceeded with dropping the idea of not going with the acquisition.

Upon request for confirmation, one of the spokespersons at eToro revealed that they are looking into several legalities. Once they have gone through all the checks and legalities from their end, they will share more information surrounding the matter.

The Anticipation Started back in 2021

It was back in March 2021 when the details had emerged regarding a deal between eToro and the particular SPAC. It was revealed that the merger between the two companies would value the deal at $10.4 billion.

However, it was decided in December that the deal had been postponed until the mid of 2022. It was announced that it would be postponed until June of 2022. The reason behind the first postponing was the rejection from the US SEC after the request had been filed at the regulator for approval.

In the recent filings shared by the US SEC, it was revealed that the valuation of the merger will be worth $8.8 billion.

After the approval from the US SEC, the new entity would have received more than $400 million in the form of private investments.

Given the recent developments, it is safe to say that eToro doesn’t want to go public for now. Another possibility could be the current market situation that has eToro rethinking its business expansion strategy.