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How to Fix SPACs


Lynn E. Turner, a former chief accountant for the Securities and Exchange Commission, called the proposed fix “an excellent idea.” Because sponsors are the ones advertising “here’s what we’re going to do in this time period,” he said, “they should be locked into that.”Mr. Palihapitiya was less enthusiastic.“This isn’t a very good idea,” he told me. “Why would a sponsor agree to a five-year lockup when management wouldn’t, nor would other investors including PIPE investors?” (At the time of the deal, institutional investors are often invited to buy shares with favorable terms through what’ …

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