The SPAC, or special purpose acquisition company, is the most recent IPO craze to hit Wall Street. Many reputable companies are going public via this route — over 200 were formed in 2020 alone. SPACs have existed since the early 2000s, but they have recently enjoyed a resurgence in popularity. And with many more slated to take companies public in 2021, the surge shows no signs of slowing down.
So what is a SPAC? What would make some companies pick a SPAC over a traditional IPO? And why are investors lining up to jump on the trend? On this installment from our "dot.LA Explains" series, host Kelly O'Grady runs through what you need to know. Be sure to register for dot.LA Intersect 2021 on Wednesday, April 28th where we will delve deeper into the role SPACs play in the media and tech industries!