Robert Marich As Hollywood constantly looks to novel forms of funding, the special purpose acquisition company or SPAC, has found new popularity over the past couple of years.
Besides being a welcome source of funding, these blank-check investment vehicles look to energize the lightly populated middle of the corporate ecosystem in the media, entertainment, sports and digital sectors.SPACs (blank-check transactions are also called blind pools and reverse mergers) enable entertainment companies to go public while bypassing the traditional IPO route.
They work by raising capital through their own IPOs, becoming publicly traded entities for the specific purpose of acquiring an existing operating company.
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