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Summary List Placement

In 2019, WeWork tumbled from initial public offering talks to near bankruptcy in six weeks.

A year and a half later, the real estate company is again set to go public, this time by merging with a Shaquille O’Neal-advised special-purpose acquisition company in a deal announced Friday. 

For WeWork and its backers, the public listing is a tale of redemption. For critics, it’s the latest evidence of an overheated SPAC market. 

But a more fundamental question, perhaps not yet fully appreciated, is what the SPAC boom means for Silicon Valley’s vaunted startup ecosystem, where failure is considered a vital component. By offering an alternative route to raise capital from the public markets, SPACs provide a lifeline for promising innovations to grow into a business, but they might also serve as a form of artificial life support for troubled or problematic startups. 

Multiple SPACs approached WeWork in December, CEO Sandeep Mathrani said Friday on CNBC.

“Sometimes you don’t pick the path; the path picks you,” he said. 

The interest in WeWork reflected the acquisition mania for the 435 SPACs currently searching for targets before their clock runs out and they’re forced to return investors’ money. 

Academics and regulators, among others, are concerned that …read more

Source:: Businessinsider – Finance


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