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Lodging Firm Sonder Is Said in Talks With Gores Metropoulos SPAC

Photographer: David Paul Morris/Bloomberg

Lodging startup Sonder, which decks out apartments and hotel rooms as hip short-term rentals, is in talks to merge with blank-check company Gores Metropoulos II Inc., according to people familiar with the matter.

A transaction between Sonder and the Gores special purpose acquisition company, or SPAC, is set to value the combined entity at more than $2.5 billion, said one of the people, who asked not to be identified because the matter is private. Terms haven’t been finalized and talks could still fall apart.

Representatives for Sonder and Gores declined to comment.

Last year, Sonder reached a valuation of $1.3 billion after a funding round.