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The blank cheque boom: Why the market for SPACs is exploding

The blank cheque boom: Why the market for SPACs is exploding

The SPAC attack

The number of companies going public on the US stock market via a special purpose acquisition company (SPAC) has hit almost 300 this year - and it's only the end of March. According to data from SPAC Analytics, there have been 296 companies go public via a SPAC in the US, which greatly outstrips the 56 traditional IPOs.

What exactly is a SPAC? Good explainer here, but if you're short on time it's basically a public shell company with a big blank cheque that buys private companies.

FOMO

The SPAC boom reflects the state of private markets as much as public, and conditions couldn't be more perfect in both. Startup valuations are near all-time highs and stocks have gained 70% in a year. It's no surprise then that owners want to cash in their shares and investors don't want to get left on the sidelines. With less due diligence, and fewer parties to deal with, SPACs offer a quick solution for everyone.

One particular company, that was unceremoniously rejected by the traditional IPO process back in 2019, has finally got its deal...

WeWork is back

WeWork, a provider of co-working office space, announced this morning that it plans to go public via a merger with Bow Capital in a deal that would value the company at around $9bn. That's a decent outcome for WeWork owners relative to this time last year, but it is still way down on some of the $90-100bn valuation estimates placed on WeWork by the world's largest investment banks when they were trying to court the company 2 years ago.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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