Video Summit: The New Attention Economy with Instagram, Yubo & Tech Buzz China. RSVP NOW
Illustration by  Jesus Escudero

How SPAC-Offs Can Sweeten Merger Deals

Photo: Illustration by Jesus Escudero

When, a marketplace for freelance handypeople, late last year was considering whether to go public via a merger with a SPAC, it heard from two special purpose acquisition companies interested in doing a deal. But when Clover Health, a tech-enabled Medicare firm, contemplated the concept in the past few months, it heard from 12 SPACs before it stopped counting the emails.

This year’s explosion in the number of SPACs on the stock market has created massive competition among SPACs for businesses to buy. “It’s a seller’s market,” said Jay Heller, head of capital markets at Nasdaq. That means tech firms looking to go public not only have a new and increasingly popular route for doing so, but also find themselves in the driver’s seat of bidding wars—known as SPAC-offs—between SPACs.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
The Briefing
Watching for Peak SPAC: The Information’s Tech Briefing
Kevin Hartz, backer of the SPAC called One, which announced a merger today. Photo by Bloomberg.
Have we hit peak SPAC yet? You could have asked that question any day over the past few weeks, or months. But lately things truly seem to be hitting a new level. Four new SPAC mergers were unveiled today alone, according to SPACInsider. Adult entertainment service Stripchat said it was planning a SPAC. We reported that a Chinese private equity firm was planning a SPAC. Underlying the SPAC...
Latest Briefs
Facebook Bans Myanmar Military Accounts After Coup
Hong Kong Tycoon Li Ka-Shing Plans to Launch SPAC
ViacomCBS Debuts Paramount+
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Sam Lessin
Modest Proposals Startups
Clubhouse and the Future of Cult-Driven Social Platforms
People are right to be focusing attention on Clubhouse’s meteoric rise. But almost everyone seems to misunderstand what is making the app so successful.
Katana's Kristjan Vilosius (from left to right), Priit Kaasik and Hannes Kert. Photo provided by Katana
Exclusive Venture Capital Startups
As Shopify Surges, So Are the Software Startups Riding Its Coattails
Shopify’s stock has more than quadrupled since shoppers began flocking at the start of the pandemic to the online stores of the smaller merchants Shopify serves.
An image from the upcoming Disney movie 'Soul'. Photo courtesy of Disney
Data Reveals 40% of Disney+ Subscribers Are in the U.S.
Disney’s flagship video-streaming service, Disney+, has quickly emerged as the only true competitor to Netflix, signing up nearly 100 million subscribers globally after 15 months, about half as many as Netflix has accumulated after a decade.
Art by Mike Sullivan
Opinion Policy Google
Data Is the New Sand
The metaphors we use are like a map. They can guide us or lead us astray. When British mathematician Clive Humby said “ Data is the new oil ” back in 2006, he meant that data, like oil, must be refined and transformed to make it into useful products and services.
Microsoft CEO Satya Nadella. Photo by Bloomberg
Exclusive Microsoft
Microsoft’s New Gig: A LinkedIn Freelancer Market Rivaling Upwork, Fiverr
LinkedIn is developing a new service called Marketplaces to let its 740 million users find and book freelancers, pitting it against publicly traded firms such as Upwork and Fiverr, according to two people with direct knowledge of the matter.
Image: Mike Sullivan
Startups E-commerce
StockX Revenue Hits $400 Million in Turf Battle With Goat
Most people who buy from e-commerce site StockX purchase the type of items it has become known for: trendy pre-owned sneakers and other streetwear.