Henrik Fisker, CEO of the eponymous electric car brand facing financial challenges, recently informed employees that the company is in discussions with four automakers regarding a possible acquisition. This development comes as Fisker battles market decline and considers seeking bankruptcy protection if an investor is not found soon.
During a meeting with employees, Fisker disclosed that the company has signed non-disclosure agreements with four car companies, indicating ongoing talks. However, he cautioned that a deal might not materialize quickly, as the potential buyers would require time for due diligence.
Fisker’s financial woes have been mounting, including missing an $8.4 million debt payment, hiring a restructuring officer, and being delisted from the NYSE due to its stock price falling below $1 for an extended period. Despite these challenges, Fisker is aiming for a strategic acquisition rather than accepting the first offer available.
The CEO mentioned that one offer had been turned down as it was not deemed “sufficient.” While rumors had circulated about talks between Fisker and Nissan, the status of these discussions remains unconfirmed. The identities of the four new potential suitors for Fisker have not been disclosed.
The current market conditions pose significant challenges for electric carmakers, particularly for struggling startups like Fisker. Any potential acquisition would need to be carefully evaluated to ensure it is a sound investment. While the interest from Nissan is uncertain, other companies may see an opportunity for a favorable deal given Fisker’s circumstances.
