One key driver of the boom in special-purpose acquisition companies is a reputational shift.
Blank-check companies were associated with fraud and lackluster investor returns for decades. Now, SPACs are cool, and the biggest names in sports, politics, business and entertainment are involved.
Celebrity influencers are even drawing attention from regulators, who warned recently about the dangers of investing in SPACs just because of famous backers.
SPACs are shell companies that go public with the sole intent of combining with a private firm to take it public. That private company then gets the SPAC’s place in the stock market. Going public by merging with a SPAC has become a popular way for early stage companies to access everyday investors and a trendy endeavor for wealthy Americans in sports, entertainment and finance.
With more than 400 blank-check companies now in the market and seeking private firms to acquire and take public, here are some of the celebrities who have helped popularize the once-obscure investments:
Original posted at www.wsj.com