In SPAC news this week, WeWork closed its deal to come public, a Walmart-backed robotics and automation company Symbotic is reportedly in talks to merge with a SPAC and former President Trump is looking to launch a media company to battle the likes of Twitter (TWTR) and Facebook (FB).
TRUMP MEDIA SENDS SPAC PARTNER ROCKETING HIGHER: Digital World Acquisition Corp. (DWAC) announced that the special purpose acquisition company will merge with and bring public Trump Media & Technology Group, subject to regulatory and stockholder approval. The transaction values Trump Media & Technology Group at an initial enterprise value of $875M, including debt, with a potential additional earnout of $825M in additional shares at the valuation they are granted for a cumulative valuation of up to $1.7B depending on the performance of the stock price post-business combination. Trump Media & Technology Group will create a social network called "Truth Social" that is now available for pre-order in the Apple App Store. The "Truth Social" network will initially launch for invited users next month and is expected to be available nationwide in early 2022, the company said.
Shares of the Trump-linked SPAC roughly quadrupled in value on Thursday before doubling again in Friday trading to close the week at $94.20.
SYMBOTIC, SVF INVESTMENT SAID IN TALKS: Walmart (WMT)-backed robotics and automation company Symbotic is in talks to merge with SVF Investment Corp 3 (SVFC), a special purpose acquisition company, that would value the combined company at about $4.5B, Mark Kleinman of Sky News reported. An agreement is possible within weeks, according to an investor, with the author adding that Walmart is expected to participate in PIPE alongside other investors if successfully completed.
BOWX, WEWORK COMPLETE COMBINATION: BowX Acquisition Corp. (BOWX), a special purpose acquisition company, and WeWork announced the completion of their business combination. The combined company will now operate as WeWork Inc. and will begin trading on the New York Stock Exchange under the ticker symbol "WE" on October 21.
ANALYST COVERAGE INITIATIONS:
Roth Capital analyst Craig Irwin initiated coverage of Decarbonization Plus Acquisition Corp. II (DCRN), the SPAC-IPO partner of Tritium, with a Buy rating and $18 price target. The analyst noted that Tritium is one of the largest providers of direct current fast charging hardware for electric vehicle markets, with a comprehensive product line for consumer, fleet, and depot charging. Management estimates a 15% market share in North America, with 20% in Europe, and attributes strength to a 37% lower cost of ownership versus peers due to its liquid-cooled systems, Irwin added.
DA Davidson analyst Matt Summerville also started coverage of Decarbonization Plus Acquisition Corp. II with a Buy rating and $16 price target. The analyst cited the SPAC's merger with Tritium, which he sees as the "definitive global leader in DC Fast EV charging technology" given its portfolio of chargers offering unique durability advantages, along with a growing selection of software and services. Summerville added that Tritium is positioned to fulfill the inflecting global demand for charging infrastructure needed to support a growing footprint of electric vehicles
SPAC IPOS THIS WEEK:
"The Week in SPAC News" is The Fly's new recurring series of stories on the latest SPAC initial public offerings, SPAC deal news, and associated analyst commentary.
-3.16 (-4.83%)
Ticker changed to META
-17.41 (-5.09%)
Digital World Acquisition
+48.06 (+104.61%)
Walmart
+1.485 (+1.01%)
SVF Investment Corp. 3
-0.035 (-0.35%)
BowX Acquisition
+ (+0.00%)
WeWork
+1.245 (+10.60%)
Decarbonization Plus Acquisition Corp. II
+0.025 (+0.25%)
NewHold Investment Corp. II
+
Global Technology Acquisition I
+
Thrive Acquisition
+
ExcelFin Acquisition
+
GoGreen Investments
+
Newcourt Acquisition
+
Esgen Acquisition
+
Worldwide Webb Acquisition
+
Industrial Human Capital
+
Athena Consumer Acquisition
+
Fintech Ecosystem Development
+
Blockchain Moon Acquisition
+
SportsMap Tech Acquisition
+