CoreWeave CEO says Core Scientific 'not a need to have' as shareholder opposition to deal rises

In a recent interview with CNBC, Michael Intrator, the CEO of CoreWeave, indicated that the company's proposed acquisition of Core Scientific is more of a luxury than a necessity. This statement comes as shareholders express increasing opposition to the deal, which is valued at approximately $9 billion and structured as an all-stock transaction. The announcement of the acquisition significantly impacted Core Scientific’s stock, which dropped nearly 18% immediately following the news. The deal has attracted criticism, particularly from Institutional Shareholder Services (ISS), a prominent proxy advisor, which advised shareholders to reject the acquisition. Despite the backlash, Core Scientific's stock price has shown resilience, suggesting that some investors believe the company's true value exceeds CoreWeave's offer. Intrator expressed disappointment over the ISS recommendation, asserting his conviction that the acquisition would ultimately benefit Core Scientific's shareholders in the long run. However, he confirmed that CoreWeave has no intention of increasing its offer, stating, "We think that the bid that we put out there for Core Scientific is a fair representation of the relative value of the two companies as an all-stock deal." He further emphasized, "It is a nice to have, not a need to have for us," indicating that CoreWeave is prepared to move forward regardless of the acquisition's outcome. Earlier this month, Two Seas Capital, a significant shareholder in Core Scientific, publicly criticized the proposed offer as too low, reinforcing the sentiment that shareholders should reject what they consider an inadequate deal. With a vote scheduled for October 30, Two Seas Capital reiterated their stance in a letter to shareholders, stating, "We see no reason why Core Scientific shareholders should accept such an underwhelming deal. Based on recent trading data, we see little evidence that they will." This acquisition bid is part of CoreWeave's broader strategy to expand its portfolio through acquisitions, having already pursued companies like OpenPipe, Weights & Biases, and Monolith this year, as it aims to enhance its offerings in the rapidly evolving AI landscape. Intrator noted, "We've been in acquisitive mode as we continue to build and extend the functionality of our company."