This article by Institutional Investor explores how social media and hype combined to enthuse investors about Bill Ackman’s failed SPAC bid to acquire a $4B stake in Universal Music Group. One millennial investor lost nearly $1 million in worthless call options when Pershing Square Tontine Holding’s deal with Universal’s parent company Vivendi was withdrawn, according to the article. Read more.
It’s unclear if Robinhood has chosen a direct listing or a traditional IPO, sources said.
“The Division [of Corporate Finance] is considering recommending that the Commission propose rule amendments related to special purpose acquisition companies,” the regulator said, without citing specifics.
With Wall Street banks allocating shares to top clients and encouraging companies to price their offerings low to ensure a rise on the first day, many in Silicon Valley feel the IPO “tax” is too great, The Economist reports.