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.
Trump SPAC is the last thing U.S. watchdogs need 22 Oct 2021 A blank-check firm’s deal with former President Donald Trump could be a toxic cocktail for top markets cop Gary Gensler. Not because of the potential for investor abuse, but because it risks drawing the SEC and other regulators further into a counterproductive political quagmire.
Trump app is ultimate art of the SPAC deal 21 Oct 2021 The former president’s social network ticks many boxes for a blank-check firm. He has a checkered business history, would struggle to launch a regular stock offering, and is valuing the yet-to-be-launched service at up to $1.7 bln. It’s also a huge test for securities regulators.
China is missing wildcard in $2.5 bln casino SPAC 20 Oct 2021 Japan’s Universal Entertainment plans to float its Okada Manila resort through a shell company run by former Sands director Jason Ader. A modest valuation will hold appeal for such a fast-developing market. China’s closed borders, however, make it a deceptively risky bet.
SPAC sponsor giveaways keep IPOs coming 12 Oct 2021 New U.S. blank-check companies are still managing to raise cash, though not at the heady pace of early 2021. To keep the bandwagon rolling, investors are getting incentives like almost-free shares. The vehicles’ backers make so much money that they have plenty of room to share.