![]() ![]() It targeted a valuation of about $3 billion including debt when it attempted to go public last year. Vice attempted to go public via a SPAC last year, reaching an agreement with 7GC & Co Holdings. Vice, the once-high-flying, digital media darling valued at $5.7 billion, is currently shopping its lucrative content studio business and hired banks PJT Partners and LionTree for the transaction, the Information reported Friday.Īccording to CNBC, Vice’s most desirable assets are likely to be its content studio and creative advertising agency, Virtue, which includes Pulse Films, known for producing films like “Pig,” starring Nicolas Cage, documentary “Bikram: Yogi, Guru, Predator” and Beyoncé’s “Lemonade.” At its height, Vice, which was founded by Shane Smith, was valued at $5.7 billion. Vice, which is saddled with outstanding debt and failed to go public via a special acquisition company, is also looking into selling itself in parts, the report said. Several buyers have expressed “preliminary interest” in buying Vice outright, CNBC reported late Monday. Vice Media, the Brooklyn-based digital media company founded by Shane Smith, has hired bankers to put the company up for sale, according to a report. George Soros fund nears $400M deal to buy Vice Media out of bankruptcy: reportĮmbattled Vice Media cutting jobs, pulls plug on ‘Vice News Tonight’ Refinery29 a victim of ‘woke’ politics, not fashion: Vice critics “If your valuation is more dependent on future cash flows, then as yields go up, so does your discount rate, and that means your valuation can drop quite a lot.Soros, Fortress in a vise to find new buyer for bankrupt Vice “It’s just simple DCF,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, referring to discounted cash flow. The Renaissance IPO ETF, which tracks newly public companies, is also under pressure - the fund fell 1.6 per cent Monday and as much as 3.9 per cent Tuesday morning to reach its lowest level since November. To be sure, the fallout for speculative assets isn’t confined to just SPACs. “There are over 400 SPACs, publicly traded, that still haven’t announced what deal they’re going to do and that has investors worried that the good private companies that otherwise would have come public in the SPAC process are running thin.” It needs to find a company that’s worthy of buying,” said Arthur Hogan, chief market strategist at National Securities. “Clearly the market was flooded with too many SPACs, and understand that every SPAC is a blank check that now needs to go find a good deal. V remains positive on the year with a more than 20 per cent return. Only Social Capital Hedosophia Holdings Corp. And Opendoor Technologies Inc., another SPAC associated with Palihapitiya, has dropped more than 25 per cent this year. Virgin Galactic Holdings Inc., a space tourism business that merged with one of Palihapitiya’s SPACs, is down 27 per cent year to date. Clover Health Investments Corp., which has already completed a merger, currently trades at about US$8 - below the US$10 threshold. VI were at all-time lows Tuesday and close to dipping below the initial US$10 unit price. IV and Social Capital Hedosophia Holdings Corp. Included in the selloff have been the blank-check companies tied to the face of the SPAC boom: investor Chamath Palihapitiya. The IPOX SPAC Index (SPAC), which tracks the performance of a broad group of special purpose acquisition companies, has fallen eight out of the last nine sessions and is down more than 20 per cent since a mid-February peak. “Those are the areas of the market that are likely to sell off more aggressively.” SPDR exchange-traded fund business at State Street Global Advisors. “The things that are getting the most pain are the ones that were the most risky to begin with - they have a ways to go with profitability, valuations were stretched,” said Michael Arone, chief investment strategist for the U.S. And a dissipation of retail dollars - which many SPACs were tailor-made for - from the market. A rotation out of growth companies, including likely targets for blank-check firms. These declines highlight a waning appetite for SPACs amid two key inflection points. The losses shrank as tech dip buyers emerged, but SPACs and other speculative parts of the market still trail the broader indexes. ![]() Its peer, the Morgan Creek-Exos SPAC Originated ETF (SPXZ), was down 30 per cent since its January launch. The Defiance Next Gen SPAC Derived ETF (SPAK) plunged as much as 4.1 per cent on Tuesday, extending its year-to-date losses at one point to about 20 per cent. Two of the biggest exchange-traded funds tracking the hundreds of special purpose acquisition companies that popped up over the past year, as the oddball financial structures went from bit player to center stage, are trading at or near all-time lows. The once red-hot SPAC market has gone cold. ![]()
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