Nextdoor may struggle to keep up with Joneses

Nextdoor Holdings

06/07/2021 19:57

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Saba
    NEW YORK, July 6 (Reuters Breakingviews) - The neighborhood
social network is merging with a SPAC in a $4.3 bln deal. Sure,
it’s useful to communities posting about yard sales and missing
pets. But it’s not profitable and its model is easily replicable
- by Facebook. Nextdoor may be living beyond its means. 
    Full view will be published shortly.
    Follow @jennifersaba https://twitter.com/jennifersaba on
Twitter
         
    CONTEXT NEWS 
    - Nextdoor said on July 6 it agreed to merge with a special
purpose acquisition company sponsored by Khosla Ventures in a
deal valued at $4.3 billion. The transaction includes a $270
million “private investment in public equity” element backed by
funds managed by T. Rowe Price, Baron Capital and Dragoneer
among others. Nextdoor Chief Executive Sarah Friar also
participated in the PIPE financing. 
    - Nextdoor, a neighborhood social network founded in 2011,
reported revenue last year of $123 million. It lost $75 million
in 2020. 
    - For previous columns by the author, Reuters customers can
click on  SABA/ 
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Nextdoor to go public in $4.3 bln merger with Khosla-backed SPAC
    urn:newsml:reuters.com:*:nL3N2OI2N8
Nextdoor statement     https://about.nextdoor.com/nextdoor-spac-announcement/
Nextdoor presentation    https://s28.q4cdn.com/517578190/files/doc_presentations/2021/07/Investor_Presentation_Final.pdf
BREAKINGVIEWS-Reddit gets high on its own supply     urn:newsml:reuters.com:*:nL4N2KG09O
BREAKINGVIEWS-Microsoft Pinterest tilt is craftier than it looks
    urn:newsml:reuters.com:*:nL1N2KH17F
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by John Foley and Karen Kwok)
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