Institutional Shareholder Services (ISS) has urged investors to vote against CoreWeave’s proposed $9 billion acquisition of computing company Core Scientific, arguing the firm’s strong standalone growth makes the merger unnecessary. The crucial shareholder vote will take place on October 30.
CoreWeave, an AI-focused cloud infrastructure provider, announced in July an all-stock offer valuing Core Scientific at $20.40 per share. But since then, CoreWeave’s stock has declined, cutting the deal’s overall value. Investor group Two Seas Capital also came out against the merger, criticizing its valuation, sale process, and fixed exchange ratio — which exposes Core Scientific shareholders to CoreWeave’s market swings.
Following ISS’s recommendation, Core Scientific shares surged more than 5% in after-hours trading to $18.81, reflecting growing investor confidence in the company’s ability to remain independent and profitable.
