Benzinga · Sep 20, 2022
Chamath Palihapitiya Liquidating 2 SPACs: Are Dreams Of Creating The Next Berkshire Hathaway Over?
Known by many as the SPAC King, Chamath Palihapitiya was one of the biggest names associated with the growing number of blank check companies taking private companies public. When SPACs were hot with the market, Palihapitiya was loved by investors and companies. Years later, Palihapitiya has been less active in SPACs. An announcement Tuesday could see Palihapitiya face more criticism and continue to put a negative spotlight on SPACs. What Happened: Chamath Palihapitiya announced Tuesday that two SPACs he launched are liquidating. “Over the past two years, we evaluated more than 100 targets and while we came close to doing a deal several times, we ultimately walked away each time for a couple of reasons,” Palihapitiya said. The entrepreneur and investor cited valuation and volatility as the two biggest reasons that deals were not reached with the SPACs. “To get a deal done would have required us stretching on price or buying an inferior asset — neither were things we felt comfortable doing.” Palihapitiya also said management teams were resistant to go public given the current volatility of the markets. SPACs Social Capital Hedosophia Holdings Corp IV (NYSE: IPOD) and Social Capital Hedosophia Holdings Corp VI (NYSE: ...
