Blank-check companies settled on deals to buy a members-only startup airline, a startup augmented reality firm and a company called Two Bit Circus this month as SPACs face pressing deadlines to strike deals or close shop, Bloomberg reports.
At least 16 SPAC tie-ups have been announced so far in May, the most since December, chipping away at a backlog of nearly 600 SPACs that need something to buy. Almost half the targets aren’t expected to be profitable this year, according to merger presentations.
The deals have a combined enterprise value of about $15 billion, with micro-amusement park operator Two Bit Circus Inc. and zSpace Inc., a startup provider of augmented and virtual reality platforms, among the smallest targets at less than $200 million each.
While the deals might be taken as a sign that blank checks are breaking their logjam, they’re just a dent in the more than $160 billion of target-needy SPACs. Read more.
