Monday, April 23, 2007
Blank check companies, also known as Special Purpose Acquisition Companies (SPACs), are in the news today. Twenty of them have done IPOs so far in 2007, raising $2.1 billion. They generally require the company to make an acquisition within two years, and the acquisition is subject to shareholders' approval. Former executives of media companies are principals in a number of these SPACs. See WSJ, 'Blank-Check' Firms Gain Favor; NYTimes, Former Media Executives Give New Life to ‘Blank Check’ Corporations.