TechnologyAnalysis: U.S. companies snub SPACs amid concerns they cannot deliver
Echo WangAnirban Sen
4 minute read
A man wears a mask as he walks near the New York Stock Exchange (NYSE) in the financial district in New York City, U.S., March 2, 2020. REUTERS/Brendan McDermid
Advertising technology firm Simplifi Holdings was ready to go public last month at a valuation of close to $2 billion when some investors balked.
The Fort Worth, Texas-based company was seeking to raise around $300 million in financing for its merger with D and Z Media Acquisition Corp (DNZ.N), a special purpose acquisition company (SPAC) led by media entrepreneur Betty Liu.
Analysis-U.S. companies snub SPACs amid concerns they cannot deliver Reuters 1 hour ago
By Echo Wang and Anirban Sen
Popular Searches
(Reuters) - Advertising technology firm Simplifi Holdings was ready to go public last month at a valuation of close to $2 billion when some investors balked.
The Fort Worth, Texas-based company was seeking to raise around $300 million in financing for its merger with D and Z Media Acquisition Corp, a special purpose acquisition company (SPAC) led by media entrepreneur Betty Liu.
Despite assurances from bankers at Goldman Sachs Group Inc that they could raise the private investment in public equity (PIPE) required, many big mutual funds and hedge funds passed on the deal because of concerns it was overvalued, according to people familiar with the situation.
Analysis-US companies snub SPACs amid concerns they cannot deliver Toggle share menu
Advertisement
25 May 2021 07:10PM Share this content
Bookmark
REUTERS: Advertising technology firm Simplifi Holdings was ready to go public last month at a valuation of close to US$2 billion when some investors balked.
The Fort Worth, Texas-based company was seeking to raise around US$300 million in financing for its merger with D and Z Media Acquisition Corp, a special purpose acquisition company (SPAC) led by media entrepreneur Betty Liu.
Advertisement
Advertisement
Despite assurances from bankers at Goldman Sachs Group Inc that they could raise the private investment in public equity (PIPE) required, many big mutual funds and hedge funds passed on the deal because of concerns it was overvalued, according to people familiar with the situation.
WASHINGTON The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when…
SEC Eyes Guidance on SPAC Projections, Clarity on Liability Shield
U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.
The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the deal frenzy in special purpose acquisition companies, or SPACs, which it worries is putting investors at risk.
The SPAC market had already started to lose steam after the SEC earlier this month suggested warrants issued by SPACs should be accounted for as liabilities instead of equity instruments, and the potential new guidance could compound that slowdown.