Bloomberg Europe Edition Headline (August 16, 2022)
I wrote about the SPAC King at this link a few months ago - link here.
Well…Palihapitiya has hit some headwind.
Bloomberg writes:
“In terse, boilerplate language, the documents stated that two SPACs launched by Chamath Palihapitiya needed to push back the deadlines they had set to make acquisitions.
Palihapitiya was in no mood to trumpet the news. There were no tweets, no interviews, none of the braggadocio that came with so many of his big SPAC deals, back when the market was the hot new thing in finance, a sure-fire, money-minting machine, and Palihapitiya was its undisputed king.
But if those euphoric moments two years ago represented the peak of SPAC frenzy -- a phenomenon created out of the same ingredients (unprecedented monetary and fiscal stimulus) that gave us meme stocks and Dogecoin millionaires -- then these SEC filings represented something of an unofficial end to this chapter of financial mania.”
Gone are the days when SPAC speculation was HYPED with TWEETS filled with Jay-Z lyrics and dizzying performance.
As always, a friendly reminder: Short seller Carson Block [calls…] “the SPAC trend the 'Great 2020 Money Grab in a paper for his firm, Muddy Waters Research, in which he writes that 'a business model that incentivizes promoters to do something anything with other people's money is bound to lead to significant value destruction on occasion.” (Source)