Celebrities have become a defining feature of the SPAC boom
26 March 2021
Celebrities are becoming as endemic to SPACs as are warrants or vague areas of focus.
Why it matters: In most cases, it's an effective marketing ploy. Window dressing for retail investors and, even more importantly, for acquisition targets.
Behind the blank check: The type of celebrity is largely irrelevant, so long as it's a household name. Someone who will garner attention. Pro athlete, singer, politician, etc.
- These celebs are almost always directors on the SPAC. Or, even less significant, advisers to the SPAC.
- In most cases, their job is just to exist. Tempt the media write the headlines, investors to buy the stock and CEOs to take the meeting. And if you don't believe that last point, you've never perused a tech founder's Instagram or been backstage at a conference where CEOs try to corner that actor from that Netflix show.
- Once the SPAC acquires a company, they effectively disappear. The new board is mostly the acquired company's board, usually plus the SPAC's chair and/or CEO. The celeb walks away with some money, stock and (Wall) street cred.
The SEC is concerned enough about this trend that it recently issued an investor bulletin, even though it's certain to fall on deaf ears:
Celebrity involvement in a SPAC does not mean that the investment in a particular SPAC or SPACs generally is appropriate for all investors. Celebrities, like anyone else, can be lured into participating in a risky investment or may be better able to sustain the risk of loss.
Caveat: There are some hands-on celebs. Former baseball star Alex Rodriquez, for example, is the CEO of Slam Corp., a SPAC that last month raised $500 million. But he's very much an exception to the rule.
The bottom line: This isn't about peak SPAC. It's about peak cynicism.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.