Blank check companies take off
Fortune weighs in on special purpose acquisition companies, or blank check companies, that seem to be thriving. These are basically entities that go public, raising funds to buy private companies. They are a far cry from the blind pools of yesteryear. SPACs are required to do a deal within two years or investors get their money back. It reminds me of an April Fool's joke many years ago, a mock article about how banks had devised a way to take individuals public, giving people a way to bet on Gates and Buffett. With SPACS, you are essentially betting on people. You have no idea what companies they will buy. But you're counting on them to make it a success. No joke. Â
For more:
- here's the Fortune article
Related articles:
- Spacs' appeal may be enhanced even more
- Blank check companies face pressures