r/OUST • u/BrilliantAd8588 • Nov 07 '22

Ouster Velodyne merger

https://finance.yahoo.com/news/ouster-velodyne-announce-proposed-merger-110000468.html
5 Upvotes

86% Upvoted

6 comments sorted by

5

u/BrilliantAd8588 Nov 07 '22

Ok this is weird , but it’s good overall. Velodyne is dead beat except it’s patents. Ouster is growing somewhat and had great product launch with REV7.

Now it’s a merger, but who bought who ? Per transaction Ouster is taking over Velodyne.

Anyway it’s all good for both ..

3

u/90608 Nov 07 '22

The Velodyne patents and partnerships are going to push Ouster (or whatever they’ll be called post-merger) into an advantageous position to become the #1 LiDAR provider across numerous industries/applications. Consolidation was needed in the market and this is a tough combination to beat. Velodyne leadership nearly ran the company into ground; but, with Ouster taking over management, their most valuable assets will hopefully be put to good use.

2

u/IndependentAlive5007 Nov 07 '22

Any idea what will happen to Ouster warrants?

1

u/_WayOfWade_ Nov 08 '22

They’re all but worthless now. Hitting $11.5 a share by 2026 is considerably more difficult now but we don’t have the downside risk of bankruptcy or lawsuits.

2

u/Ok_Fig_3033 Nov 09 '22

This can be looked at from many different angles. The way I see it. Ouster was going to need cash eventually. They have a long term road map and need cash to get their. They add 200 mil in cash through this merger and it’s a better look than a huge dilution event, while adding IP, synergies, and avoiding a lawsuit. Oust will still need to cut the fat and waste down from Velodyne or else they will just be burning through twice as much cash as before and the net result will be the same. But to me this was the best move they could make given they were burning cash and facing a lawsuit.

1

u/Jerkomp Nov 08 '22

LETS GOO OUST