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Chamath Palihapitiya, The ‘SPAC King,’ Is Over It



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To prevent them from influencing investors, companies going public through I.P.O.s are largely barred from making projections. But SPACs have no such restrictions because the Securities and Exchange Commission treats the deals as mergers.Encouraged by his success, Mr. Palihapitiya launched two more SPACs in April 2020, raising roughly $1.2 billion. For companies hesitant to go public in the early days of the coronavirus pandemic, when the market was volatile, Mr. Palihapitiya’s pitch became more attractive because his vehicles were already trading.To whip up interest, Mr. Palihapitiya began targeting everyday traders, posting incessantly about SPACs on Twitter and on his podcast. He was also a frequent guest on CNBC, one of the country’s top-rated b …

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