ZombieFintech

What Happened to Better Home & Finance?

Ticker: BETRSPAC Year: 2021Merger: 2023

Return

-99.5%

Current Price

$0.75

Peak Price

$69.98

Trust Size

$750M

Summary

Mortgage lender infamous for CEO Vishal Gargs mass layoff of 900 employees on a Zoom call. Stock crashed 99.5% as rising interest rates destroyed the mortgage market.

What Happened

Better.com announced a SPAC merger with Aurora Technology in May 2021 at a $7.7B valuation. But the deal was delayed for 2 years as CEO Vishal Garg became infamous for firing 900 employees on a single Zoom call in December 2021 — calling them "dumb dolphins." Rising interest rates decimated the mortgage industry. By the time the merger finally closed in August 2023, Better had lost 90%+ of its revenue. The stock immediately cratered from $70 (adjusted for reverse splits) to under $1. Garg retains control via super-voting shares despite the destruction.

Key People

Vishal GargCEO & Founder— Infamous for mass Zoom layoff, retains control via super-voting shares
SoftBankMajor Investor— Led $500M funding, massive writedown

Timeline

2021-05

SPAC merger announced at $7.7B

2021-12

CEO fires 900 on Zoom call

2022-01

Deal delayed, due diligence restart

2023-08

Merger finally closes 2 years late

2024-01

Stock under $1, 1:50 reverse split

Risk Indicators

⚠ïļ Reverse Split⚖ïļ Class Action Lawsuit