CoreWeave CEO Defends Core Scientific Acquisition as “Nice to Have” Amid Shareholder Resistance

Deal Faces Mounting Opposition

CoreWeave CEO Michael Intrator has reportedly described the company‘s proposed acquisition of Core Scientific as non-essential, stating the $9 billion all-stock deal represents a “nice to have” rather than a necessity for the AI cloud provider. This characterization comes as shareholder opposition to the acquisition intensifies, with a crucial vote scheduled for October 30 that could determine the deal’s fate.

Deal Faces Mounting Opposition
Shareholder Concerns and Advisor Recommendations
CoreWeave’s Stance on Deal Value
Strategic Context and Market Reaction
Looking Ahead to Shareholder Vote

Shareholder Concerns and Advisor Recommendations

According to reports from Institutional Shareholder Services (ISS), a leading proxy advisory firm, shareholders are being recommended to vote against the acquisition. The analysis suggests that Core Scientific’s rising share price following the deal announcement indicates investors believe the company is valued higher than CoreWeave’s offer. Sources indicate that ISS stated this price movement reflects market sentiment that Core Scientific may be worth more than the proposed acquisition price.

Major shareholder Two Seas Capital has publicly opposed the deal, with analysts noting their October 17 letter to shareholders described the offer as “underwhelming.” The shareholder reportedly stated they see “little evidence” that investors will accept the current terms based on recent trading data.

CoreWeave’s Stance on Deal Value

Michael Intrator expressed disappointment with the ISS recommendation but maintained that the deal serves Core Scientific shareholders’ long-term interests, according to his CNBC interview. However, he confirmed CoreWeave will not increase its offer, stating the current bid represents a “fair representation of the relative value of the two companies.”

“Everything has a value, and the number we put out is the value we’re willing to pay for them under all circumstances,” Intrator reportedly told CNBC. He emphasized that CoreWeave would continue its strategy regardless of the acquisition’s outcome, reinforcing the “nice to have” nature of the deal for his company.

Strategic Context and Market Reaction

The proposed acquisition comes amid CoreWeave’s aggressive expansion in the AI sector, with the company having pursued several AI-related acquisitions this year including OpenPipe, Weights & Biases, and Monolith. According to the CEO’s statements, the company has been in “acquisitive mode” as it builds out its functionality and product offerings.

Market reaction to the July announcement was immediately negative, with Core Scientific’s stock price reportedly falling nearly 18% following the news. However, subsequent price increases have suggested investor confidence in higher valuation, according to analysts monitoring the situation.

Looking Ahead to Shareholder Vote

With the October 30 shareholder vote approaching, the deal’s future remains uncertain. The combination of influential proxy advisor recommendations and public opposition from significant shareholders creates substantial hurdles for the acquisition’s approval. Industry observers suggest the outcome will provide important insights into valuation expectations for AI infrastructure companies in the current market environment.