SPACs

Flying car SPAC paves pristine highway in the sky

22 Dec 2021

Embraer’s airborne taxi unit Eve is going public by merging with Zanite Acquisition. It ticks every box for a blank-check deal in the red-hot electric vehicle market, including a long list of pre-orders and blue-chip backers. The only problem is that its market doesn’t exist yet.

Byju’s SPAC turns into India’s $48 bln IPO problem

20 Dec 2021

New Delhi is yet to allow companies to list directly overseas, so ed-tech star Byju’s is mulling a U.S. debut via a merger. Other startups will probably get creative too. It’s similar to the regulatory grey area that China’s tech giants exploited but are now paying the price for.

Byju’s SPAC deal is straight out of the textbook

16 Dec 2021

India’s edtech startup has an offer to go public at a $48 bln valuation. SPAC sponsor Michael Klein would invest in a private placement too, adding credibility to sales forecasts. Byju’s copies Grab’s deal outline, but growing U.S. revenue could help it fare better.

SoftBank struggles to crack the SPAC formula

15 Dec 2021

Companies backed by the Japanese tech investor that went public using blank-check vehicles have had mostly disappointing results. Now that a SoftBank-sponsored SPAC has unveiled its first target, investors will find out whether Masayoshi Son’s team is a better buyer than seller.

Harley-Davidson hitches easy ride on SPAC boom

13 Dec 2021

The ageing motorcycle brand will list its electric bike unit for $2.3 bln by merging it with a blank-cheque vehicle. It’s a way of tapping into hungry, ESG-focused investors without giving away too much upside. And a less-than-trippy valuation should ensure a smooth journey.

Walmart’s robot SPAC automates industry disruption

13 Dec 2021

The retailer is investing $150 mln with a SoftBank-backed SPAC that struck a $5.5 bln deal with a robotic firm it uses. Similar to other blank check mergers, it is speculative. But like Amazon’s Rivian deal, Walmart is making a low-risk, high reward bet on an autonomous future.

Getty puts media SPACs in a better frame

10 Dec 2021

The stock-photo company is merging with a blank-check firm in a $4.8 bln deal, raising cash to cut debt from Getty’s days in private equity ownership. After BuzzFeed’s dismal SPAC merger, a reasonable valuation and profitable model go some way to rehabilitating the genre.

Prominent SPACs like Lucid make good lessons

7 Dec 2021

The electric-car maker drew an SEC subpoena related to its blank-check merger. It was backed by seasoned dealmaker Michael Klein. But that, and size, made it a target. Amid a flurry, making examples of deals like Lucid or the Trump SPAC helps the swamped agency flex its muscles.

Trump SPAC is masterclass in political workarounds

7 Dec 2021

The ex-president’s new media venture is raising $1 bln as it merges with a listed blank-check firm. If the deal closes, Trump’s backers will have a new way to support his agenda without the usual campaign finance strictures, and with the prospect of a profit to boot.

Zegna tailors elegant fix for BuzzFeed problem

6 Dec 2021

The Italian suit-maker and the millennial media group are both going public through SPACs. But Zegna has raised extra funds that kick in if investors extract money before the deal closes, as 94% of BuzzFeed’s did. With cash comes confidence; Buzzfeed ended up with less of both.

UK health robot SPAC is punt on big pharma buyout

6 Dec 2021

The Zaoui brothers are merging their blank-cheque firm with BenevolentAI, which uses tech to discover new drugs. A $440 mln cash infusion will keep computers whirring, but revenue remains distant. Investors including AstraZeneca and Sanofi’s former CEO hint at a future takeover.

Manscaped SPAC shaves public investors’ consent

30 Nov 2021

The “below-the-belt” grooming company is offering cheaper shares to private investors in its deal with a blank-check firm, which can close even if shareholders pull their cash out. SPAC sponsors are incentivized to keep deals flowing at all costs. This adds to the overall look.

Chancellor: U.S. bull market can’t go on forever

24 Nov 2021

Stein’s Law dictates that “if something cannot go on forever, it will stop.” Timing is another matter. “Nowcasting” looks at macroeconomic and market indicators, and finds little cause for concern. But it’s just another model. And, as Box’s Law states: all models are wrong.

Capital Calls: Risky banks, UK SPAC, AO World

23 Nov 2021

Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.

Capital Calls: CalPERS and private equity, Art market

16 Nov 2021

Concise views on global finance: The biggest U.S. public pension fund is taking on more risk; works collected by the Macklowes sold for $676 million on Monday in a reminder that the richest have prospered through the pandemic.

Former Uber rival flags down SPAC business model

11 Nov 2021

Gett, once a ride-hailing hopeful, is reinventing itself as a platform to help big companies manage their taxi bills. Merging with a U.S. blank-cheque firm brings cash to pursue the switch. A less shiny $1 bln valuation leaves some room for disappointment.

Capital Calls: Couch-potato habits help Roblox

9 Nov 2021

Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.

Black Rifle Coffee and SPACs are a logical blend

4 Nov 2021

The veteran-focused coffee roaster is going public by merging with a blank-check company at a reasonable $1.7 bln valuation. It’s fast growing with an ESG flavor, but unhelpful brand associations might put a regular IPO off limits. It’s the kind of thing SPACs were designed for.

Goldman gets associate membership of SPAC mafia

1 Nov 2021

The Wall Street bank sold some of its clients a structured note that lets them dabble in blank-check vehicles in the way specialist hedge funds do, with near certain returns. Because Goldman offers financing and keeps gains above a threshold, it is playing the game itself too.

Sports pros play risky offense-only investing game

26 Oct 2021

Athletes like hoops star Kevin Durant and managers such as Billy “Moneyball” Beane are backing deals in the live entertainment and ticketing arena. Ebullience around resurging fan bases is validating crazy valuations. But in money as in sport, fundamentals will prevail over hope.