Will This Megadeal Reignite the SPAC Boom?
Special purpose acquisition companies were a big catalyst in pushing the stock market to record highs in 2020 and early 2021. However, the SPAC boom has slowed down considerably in recent months, even though stock market benchmarks have continued to move broadly higher since then. At 12:30 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 146 points to 33,600, but the S&P 500 (SNPINDEX: ^GSPC) had gained 6 points to 4,134, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had managed to rise 80 points to 13,930.
Even on a mixed market day, there was a lot of excitement in the SPAC community about a massive merger that would involve the biggest private company yet to use the method of going public. Even though shares of the SPAC involved were broadly lower on the news, deals of this size prove that there's still demand from privately held businesses to use special purpose acquisition companies to raise capital.
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Source Fool.com
