, Columnist
Even Richard Branson's SPAC Is Struggling Now
The sudden cooling off in the SPAC market could disrupt previously announced deals.
Up, up and not away.
Photographer: DON EMMERT/AFPThis article is for subscribers only.
Launching a special purpose acquisition company has been pretty easy with all the money sloshing around the financial system. Finding a target for the SPAC that shareholders get excited about is another matter. Billionaire entrepreneur Richard Branson knows plenty about dealmaking. Even he’s struggling now.
A SPAC raises cash in an initial public offering and then looks for a company to merge with and thereby take public. So far this year these cash shells have raised more than $90 billion in North America, surpassing 2020’s haul in less than three months.