As President Trump plans his next move in the political and business world, could a SPAC be in the works?
Several insiders in the booming area of Special Purpose Acquisition Companies — known as SPACs — are saying that Trump will be the next celebrity to support such an entity.
The former president is best known for his extravagant country clubs and high-end apartments. But three Wall Street insiders involved in SPACs claim that rumors are swirling that Trump might be exploring a possible SPAC.
Eric Trump declined to comment on his father’s plans but said in a short statement, “I’m not working on an SPAC so I cannot comment.”
Meanwhile, Jason Miller, a Trump adviser recently said that Trump is “coming back to social media in possibly three months with his own website.”
It’s not clear if President Trump’s SPAC plans would be a part of his social media play. But it is conceivable he could raise money to take a social media company public.
SPACs are companies that have no real business activity but are listed on exchanges where people can buy shares. They then use that money to buy other companies.
The use of SPACs has skyrocketed recently. According to Zacks, SPACs have brought in $79.87 billion in gross proceeds from 237 listings in 2020 — going past the 59 traditional IPOs that brought in $13.6 billion last year.
SPAC executives predict Trump’s political woes could harm any future business he has, even a SPAC. Many large companies have said they would not work with the Trump Organization after his Jan. 6 protest turned into a violent event.
Author: Blake Ambrose