One of the most prominent names in SPACs, Chamath Palihapitiya, faced backlash last week after regulatory filings showed that he had sold his entire personal stake in Virgin Galactic, which he took public through a blank-check fund, the New York Times’ DealBook reports. He will stay on as chairman, and will indirectly remain a shareholder through an investment firm that owns a stake in the company. Palihapitiya defended the move.
The news — coming as shares of many SPACs, as well as Virgin Galactic’s, tumbled amid a broader market decline — added to concerns about a blank-check bubble. Read more.
