Deals·October 22, 2026 at 7:00 AM EDT·2 sources
David's Bridal plans to spin off AI platform Pearl into publicly traded company
spin off, log scale$350M
$100M$1B$10B$100B
What happened
- David’s Bridal filed a nonbinding letter of intent to spin off its AI platform, Pearl, into a standalone publicly traded company.
- Pearl is targeting a valuation of roughly $350 million, with the transaction expected to close in the first half of 2027.
- Cion Investment Corp. has proposed investing $25 million as an anchor investor in Pearl.
Target valuation
roughly $350 million
Expected closing
first half of 2027
Projected 2027 revenue
more than $85 million
Proposed anchor investment
$25 million
Why it matters
The proposed separation could give Pearl independent access to capital and talent while allowing David’s Bridal to focus on its retail business. The transaction also tests investor appetite for consumer-focused AI companies amid a weaker IPO market.
What to watch. Whether the nonbinding letter of intent advances to a definitive transaction and closes in the first half of 2027.
Deal terms
spin off
Pearl
Value
$350M
Investors
Cion Investment Corp.
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Timeline
- First reported by CNBCOct 22David's Bridal plans to spin off AI platform Pearl into publicly traded company
- Retail Dive reportsOct 22David’s Bridal to spin off Pearl into stand-alone, publicly traded company
Who is involved
David's Bridal plans to spin off AI platform Pearl into publi…PearltargetCion Investment Corp.David’s BridalKelly Cook
CompanyInvestorPerson
Sources (2)
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