Discussion #3

Once you are more familiar with SPACs, go to the 2nd WSJ article about SPAC Selloffs.

So, what I want you to do for this week’s discussion is to discuss one particular SPAC deal (other than WeWork!). This can be a closed deal from within the past couple of years or one that is still in process.

Again, I am providing the specifics on WeWork as an example, do not use WeWork as your selected SPAC deal to discuss.

• Provide background on the firm that you selected that seeks to enter into a SPAC deal (in the background article, this is WeWork), who is the SPAC (in the background article, this is BowX).
• Why did/is the firm considering going with a SPAC as compared to a traditional IPO? In WeWork’s case, this was prior failed attempts as well as management issues.
• Looking at the bigger picture, what are the risks to investors of investing in a SPAC vs. an IPO? Do you feel that certain investors are at greater risk with SPACs, and if so, WHY?

Be sure that you provide at least one credible source, but it is likely that you will pick up bits and pieces from multiple articles. If you are using info from an online video, be sure to cite that video, just like any other outside source. For purposes of this discussion, assume the videos are from “credible” sources.