A Silicon Valley cloud-computing giant has made an unusual bet to head off any prospective investor stampede from a “blank check” company it’s backing — namely, by volunteering to pay a premium for it, The New York Post reports.
Twilio — whose networks power phone calls and text messaging for apps like Airbnb and Facebook’s WhatsApp — announced it has entered into a merger agreement to invest between $500 million and $750 million in SPAC M3-Brigade Acquisition II. As part of the deal, M3-Brigade agreed to acquire Syniverse.
Twilio’s arrangement values the SPAC at $11 a share — a 10 percent premium to the standard $10 per share price most SPAC investors are offered. M3-Brigade has been trading below $10.
Twilio’s motivation, the Post reports, is to give M3-Brigade SPAC shareholders the confidence not to redeem their stock and to stabilize the SPAC’s share price. Read more.
