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Of course it is.
Virtually every late-stage company in private markets has been approached by a blank check company looking for a deal at this point.
To start the day off right, WeWork, an office-sharing startup, has reportedly been in talks to combine with a dedicated takeover company. the Wall Street Journal, in a deal that could take the corporate public to a value of about $ 10 billion. The SPAC in question is Bow Capital Management, run by the owner of the NBA’s Sacramento Kings, Vivek Ranadivé.
If a deal were to be struck, that would be a surprisingly quick return to the public markets for WeWork, whose disastrous attempt to go public in 2019, dropping its valuation to a fraction of the original figure. WeWork’s new CEO, Sandeep Mathrani, has also said he plans to turn a profit for the company sometime in 2021, before revisiting the idea of an IPO.
ROBIN HOODThe popular stock trading app has reportedly raised an additional $ 1 billion from existing investors on top of hundreds of millions more in credit as it faces a liquidity crisis fueled by the ongoing trading frenzy.
It’s just the last chapter in the saga that started with irreverent Reddit investors cruising against short-selling hedge funds. Wild trade made it difficult for Robinhood to pay clients owned by transactions and to provide collateral to clearing facilities. On Thursday, the startup stopped buying shares in companies such as GameStop, sparking widespread outrage from users and even provoking lawsuits. “In order to protect the company and protect our customers, we had to limit the purchase of these shares,” Robinhood CEO Vlad Tenev told The Washington City Times on Thursday. The company will allow limited trading of GameStop shares starting Friday.
While the story is portrayed as one of the major investors competing against retail players, the story is not so short and dry: the rally in shares of film chain AMC may also have been a boon to tech-focused private equity firm Silver Lake and credit investor Mudrick. Capital Management.
ARE MORE SOFTWARE SPINOUTS ON THE ROAD AFTER QUALTRICS IPO?German software maker SAP bought research and analysis company Qualtrics for $ 8 billion about two years ago, with the then CEO of SAP trying to soften critics of the expensive deal by comparing it to Facebook’s famous takeover of photo-sharing company Instagram.
While Qualtrics’ IPO Thursday certainly falls short of SAP’s original intent, the investment has paid off, at least on paper. Shares of Qualtrics were up 51% on their debut, making the company worth $ 27.3 billion. SAP plans to maintain a controlling interest in the company.
Term Sheet caught up with Qualtrics Zig Serafin and founder Ryan Smith on Thursday to ask about the rationale behind the spin-off, and Smith had an interesting prediction:
“I think this is going to be a trend that you will see other companies here looking at and saying, this is a really good new path for people to IPO,” said the chairman of Zoom. “How many companies were taken over and then split up in the company in this way? Not much. There are many companies within larger companies whose market and category are in hyper growth … While we looked forward to the relationship between SAP and Qualtrics for almost two years, the real question came: ‘Are we going to invest heavily under the current economic structure or is there a another way we can invest more? ”
SAP has struggled to calm shareholders looking for growth in recent months, with the company’s stock holding up over the past year. The Qualtrics spin-off has now also attracted Silver Lake as an investor.