The corporate‑governance firm ISS has issued a recommendation that investors should oppose the proposed acquisition of Core Scientific by the cloud‑computing firm CoreWeave. In a statement released on Tuesday, ISS cited three main reasons for its advice. First, ISS said the purchase price offered by CoreWeave undervalues Core Scientific’s technology and potential earnings. Second, it argued that the two companies operate in different market segments, making a merger less likely to generate the synergies that usually justify buy‑outs. Finally, ISS warned that CoreWeave’s current cash flow and debt levels could create financial strain if the deal closes.
CoreWeave’s deal was announced last week, with the two firms hoping to combine Core Weave’s advanced GPU‑based services with Core Scientific’s research‑grade software. The move drew mixed reactions from analysts, but ISS’s advisory carries weight with a segment of institutional investors who look to the firm for guidance on major corporate actions. If a large group of shareholders follows ISS’s advice, the deal could stall or be abandoned outright. Investors monitoring the stock, as well as crypto‑tech enthusiasts, are watching closely to see whether core advisers and shareholders will change their stance on the venture.
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