The ‘SPAC King’ Is Over It

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Publish Date:
December 7, 2022
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Source:
The New York Times
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Summary

Michael Klausner, a professor at Stanford Law School, has written about the difference between those who back SPACs, like Mr. Palihapitiya, and investors who buy their shares after the listing. A backer can put in a small amount of money but still gets 20 percent of the shares, essentially for free. Ordinary investors don’t get the same terms.

“Sponsors make a killing, and public shareholders take a bath,” Mr. Klausner said.

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