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SPACs are the new IPOs

Churchill Capital Corp. III has agreed to acquire health-cost management services provider Multiplan at an initial enterprise value of $11 billion, as such deals continue to proliferate as alternatives to IPOs.

Why it matters: This is the largest special purpose acquisition company (SPAC) merger, and also includes the largest private investment in public equity (PIPE) associated with a SPAC. Existing Multiplan owners like Hellman & Friedman and General Atlantic will roll over more than 75% of their collective stake, and own over 60% of the public company.


  • A source tells Axios that negotiations began before the pandemic.

Context: A SPAC is a shell company that raises money from the public markets for the purpose of acquiring a private company.

This too: Spartan Energy Acquisition Corp., a SPAC backed by Apollo Global Management, agreed to buy electric car maker Fisker at a $2.9 billion enterprise value.

Oh, and this: Two more SPACs on Friday filed to go public.

Why now? SPACs have been around for years, but what we're seeing now seems largely driven by public equity froth.

  • Stock markets are salivating for almost any new issue, whether or not it includes an operating company. That's the perfect petri dish for SPACs, and they're raising billions.
  • IPOs are also going gangbusters but often take longer to complete with far more disclosure than do reverse mergers via SPAC. Plus there's rampant underpricing. So why not strike while the iron is hot and (relatively) easy?

Going public via SPAC does have some downsides. For example, you still need shareholder approval, could get hammered by redemptions, and need to give a large slice of economics to the SPAC sponsor.

The bottom line: SPACs, not direct listings, are the 2020 challenge to IPOs and IPO bankers.

Opposition leader Leopoldo López flees Venezuela despite tight security

Leopoldo López, a former political prisoner and prominent Venezuelan opposition leader, has left the country, his Popular Will party confirmed in a statement Saturday.

Why it matters: He's been an influential force in the push to oust President Nicolás Maduro's regime and a mentor to opposition leader Juan Guaidó. He'd been in the Spanish ambassador's Caracas residence since escaping house arrest in April 2019 following a failed military uprising.

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The big picture: Murkowski's decision leaves Sen. Susan Collins (R-Maine) as the only Republican expected to vote against Barrett.

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Why it matters: In a time of unprecedented colliding crises for the nation, the polling considered Biden to be vastly more competent.

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The murder hornets are here

Entomologists in Washington state on Thursday discovered the first Asian giant hornet nest in the U.S.

Why it matters: You may know this insect species by its nom de guerre: "the murder hornet." While the threat they pose to humans has been overstated, the invading hornets could decimate local honeybee populations if they establish themselves.

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Biden is highest-spending political candidate on TV ads

After spending an additional $45.2 million on political ads this week, former Vice President Joe Biden has become the highest-spending political candidate on TV ads ever, according to data from Advertising Analytics.

By the numbers: In total, the Biden campaign has spent $582.7 million on TV ads between 2019 and 2020, officially surpassing Michael Bloomberg's record spend of roughly $582 million. Biden's spend includes his primary and general election advertising.

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SurveyMonkey poll: Trump improves, but not enough

President Trump's final debate performance exceeded Americans' expectations, but it wasn't enough to shift the dynamics that left him trailing Joe Biden across most measures, according to a new Axios-SurveyMonkey poll.

What they're saying: "Liar" was the word used most by debate watchers to describe Trump's performance, followed by "lies," "strong," "presidential" and "childish." "Presidential" was the word used most to describe Biden's performance, followed by "liar," "weak," "expected" and "honest."

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Hunter Biden saga dominates online debate

Data: NewsWhip; Table: Axios Visuals

The mainstream media turned away. But online, President Trump's charges about Hunter Biden were by far the dominant storyline about the final presidential debate, according to exclusive NewsWhip data provided to Axios.

  • Coverage of business dealings by Joe Biden's son — and pre-debate allegations by one of his former business associates, Tony Bobulinski — garnered more than twice as much online activity (likes, comments, shares) as the runner-up.
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