emily: meantime, you've got spac 2 coming, and the description is similar to spac 1. what can investors expect and what are you looking for? kevin: a lot of the same. innovative companies, great teams, massive markets, competitive advantages, those are what we really stuck to and what we are looking for. in our second spac, we have zero warrants. we are really looking for a partner that is going to appreciate less dilution, which, every partner will by having zero warrants. emily: i'm curious, for the spac s that you think might run into some challenges, could those challenges involve litigations? it's not just about making money, but what about some of the possible negative side effects? kevin: undoubtedly there will be a lot of litigation in the future. it is just an unfortunate byproduct of partnering in these companies, going after not so high quality companies. it will be tough to see when these retail investors lose their money, that they are going to end up, of course, suing. and maybe that's the good thing. nobody is ever excited about the legal system and law

that's an exciting side of the spacs -- these spacs. emily: you cofounded eventbrite, your wife julia now runs the company, what is your outlook on events in the future? do you see a more hybrid approach, longer-term, even after we are all vaccinated and we are in this kind of, new normal? do you see live events bouncing back, in person, just the way they were? kevin: great question. it has been a monumental comeback. one of the greatest business comebacks was julia and the team at eventbrite fighting for survival in a period of march of last year. just one year ago and the company had negative revenue, more refunds than sales. it was an incredibly bleak situation. julia right sized the company. she was able to raise funding under dire circumstances. now, it's very exciting to see the business coming back, and the business is coming back very strongly. we've always had an online events product. that thing really took off. i'm not sure i actually know that a lot of our creators, which we call our event coordinators, would still stay in a

do you think the spac is oversaturated, are we in a spac bubble? >> thanks for having me on the show. the spac market has been a really revolutionary for all of capital markets. this product was the product several years ago, but deutsche bank has been in this market for over 15 years. we have a dedicated team of professionals focusing on the spac market. and while there has been a significant amount of activity, we believe the market is here for the long term. it is becoming an asset class if you will. that hedge funds, they are all investing in this market and really a true asset class, so while we have seen a significant amount of activity as you said of over $100 billion of spac activity, spac capital being raised in q1, which if you look at the last five years, what we are seeing right now is clearly quality. there have been companies that have gone public through spac, but the spac's have returned if you will for the investors, and they have been really solid, but because of the valuations being significantly stretched, there is an increasing

according to goldman sachs there's $129 billion in spac capital looking for a target, are spacs just chilling or are we witnessing a spec-tacular collapse steve grasso. >> i'm in wpf, foley spac and i'm in pace that's flipped to a new symbol these are for quanlity companies the slow down was for companies that were never going to earn and put these way out revenue target where's they're earning zero and saying they will earn 5 to $10 billion in five years but have not one dollar of revenue this is not the case with a pay safe or the alike. this is the case for a lot of names but you have to look at what you're buying this, buy the way, a spac is a great investment for the retail public. >> right. >> because you're stopped out at $10. you could not vote for it, you get your $10 back. or you could vote for it and get your $10 back. in the ipo world the retail investors, sometimes, or most of the times pays the high. the stock rips higher than the ipo price. only people who get rich off that are institutions, high-net worth individuals an the banks. >> yeah. >> so spacs will make a retu

let's start with spac's. joe: so many companies went to the spac round. it is easier, faster, may be a little less scrutiny. but they have not been doing so well. if we look at the greenhorn line, after crushing debt, it has faded lately, looking pretty weak. there are some regulatory issues but also just markets. romaine: also some concerns i guess about the ownership structure. joe: joining us with more, bloomberg deals reporter. there are a lot of moving parts to this story. there is the market performance of companies that have gone public. there is also the slowdown. we know that anchors are tired from all the paperwork. now there are some accounting questions. romain is laughing but it is true, there is a lot of paperwork involved. now there are some accounting issues. how does this add to the headache? >> the short answer, this s.e.c. statement will create even more paperwork. they are basically saying that it should be treated as liability rather than equity. everybody, in whatever stage there spac is in, pending or a spac that has announced a dea

appear bad spabs ipoe that's a good spac. you buy it into the low teens. >> guy >> nasdaq in earnings on wednesday. >> all right thanks for watching fast see you back here tomorrow at 5:00 mad money with jim cramer starts right now. >> pie mission is simple, to make you money, i'm here to level the playing field furor al investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm trying to make you money. my job not just to entertain but educate and teach you. call me or tweet me @jimcramer listen up, we got two markets here that's right w what we've got is. >> the house of pain. >> the house of pleasure. >> the house of pleasure has walls made of traditional stocks that hold up under scrutiny but the house of pain has been falling apart and today, the the walls came tumbling down dow sinking 123 points, s&p losing and nasdaq tumbling .98% where the house of pain resides. we got t

total spac just a complete spac the only reason why you should buy it is because it's a spac. it is not, it is not necessarily a great company. all right. i need to go to dave in california, dave >> caller: jimmy chill thanks for taking my call. first time caller. >> chill man here. >> caller: my stock today is pay safe it went public about two weeks ago on the 31st of march and stock has come down quite -- about 11%. i just want to get your thoughts on going forward and -- >> okay. this is a bill foley company it's a bill foley company and i believe in the company some people don't believe it has enough special technology. i disagree down 10% i want to buy. there is a spac i like if i hated every spac -- i don't. how about franco in new york, franco >> caller: hello, sir. hey, hey, how are you doing? >> hey, hey, what's up >> caller: hey, hey, quick question what do you think about this st stock. >> i have to read how amd will be crushed by intel and i'm getting really tired of the narrative but the deal -- i like it let's go to mike in kentucky, mike >> caller: boo-yah, jimm

one thing to note is we were a no warrant spac. often times when you see these mergers, there's a lot of warrants associated with the transaction. inmates target universe for them of higher quality. -- quality on newer is the highest-quality of texas to o much pursuit. they're not going to tolerate dilution that mcadams a more action spac that was the way go public that could compellingly tell his story, that can add differentiated valued and enlist eluded architecture of ipo. >> obviously there will be those that are better quality than others, but one that seems clear is that the sec and other regulatory bodies will take a closer look at spac. he change the world for you? >> i think it will put increased pressure in terms of differentiation between hike wally spac sponsors that have something unique to offer. they can bring something differentiated table. i think we are seeing that layout is a harder market -- it was a harder market in 2-3 months ago. going public through spac's complicated to do it takes it will, need to have sp

, "we're not like all those other spacs." do you think it could haveot a $40 billion valuation if it were a typical roadshow, with multiple interests, gauging interest from millions of investors? i don't mean to be overly skeptical. i'm just curious on your talk because other people ask you now. >> scott, can i go now or after the break? >> i'm sorry you go now, then we will take the break and come back and do markets. it is a great question by josh please answer. >> yeah, no, i think there are two things there you know, soft bank has been an important global investment partner in almost all rideshare companies. they continue to be in grab. we're grateful, you know, for the work they've done to get grab to this juncture. we think over the fullness of time they will probably have to realize some of their investment returns, but you would have to ask soft bank as to their intentions we know there's a tremendous amount of demand from global institutional investors that would be happy to buy those shares in terms of the roadshow,

for more on the spac boom, let's bring in the direct or of refinitive is the spac boom over? >> we estimate over 500 companies are looking for transactions inn vvestors is looking at the deals done and potential targets and taking a pull back to assess the markets. >> what is driving some of that? is it the rising interest rate picture? is it the idea that maybe investor sentiment is changing or target companies are not as plenty as they were in the last 24 months? >> it is a combination of all of that you have a look at 770 public companies come on scene in last 12 months. the highest level of activity in 25 years many of them are the spac deals which were not on the radar before all searching for targets in a similar value range. the valuation story comes into play i think there is now very large amount of capital in the system looking for a certain real number of companies at this point. i think that is really causing the market to take pause >> has there been something thin about the types of the deals done in spacs? for me, covering news, it seems as these transformation

is that 24 spacs a week? probably novelty is it a handful of spacs yes, a week. the people who will win are those who can invest in companies and make them more value. i think myself and my partner, we formed a venture called life sciences, we have expertise in capital formation. eli and his team have expertise in area of the market, life sciences, with a huge number of amazing businesses early in their growth cycle where they need capital to accelerate the growth and they need, you know, some experienced supervision from people who understand the public markets we think we can come together with our cm life franchise and be great partners of choices for these businesses we did our first transaction in february and recently announced our second, soma logic soma is an amazing business. your pronunciation was correct i will let eli get -- >> shwoo. >> i will let eli get into the specifics, but they analyze 10,000 proteins to help biopharma companies to develop drugs knowing how to target proteins and drive results ultimately it will drive into applications as well

plus is there easy money to be made in the spac market. the spac king joins us to break down the trade that and more when "fast money" returns. ersonalized investment strategies to help you get back to your future. edward jones. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ new projects means new project managers. visit letsmakeaplan.org to finyou need to hire.ssional. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. >>> welcome back to "fast money. tonight's big number 549 that's how many spacs have priced since 2020 and in the last year, 134 have yet to announce targets and are currently trading below the $10 floor. so we're thinking, why don't investors buy up these under water spacs and make easy money becaus

, but spac's already out there that are treating these warrants given to spac sponsors as equity. alix: which basically means they buy in, then they get a warrant that can trade freely after the fact. sonali: yeah. really, you have different accounting treatment, which is a pain in and of itself are the people doing spac's and everyone involved with them. but on top of that, they are recognizing that these are liabilities. that they are not indexed equities. alix: they sill have to be paid out at some point. sonali: and it is really irregardless of how the stock does. you have seen banks like morgan stanley and evercore work with a lot of spac sponsors to say, let's make your payout tied to performance of the spac. you're seeing the industry self regulate, but now you're seeing regulators come in as well. alix: which is kind of a weird dividend tied to the business. no doubt a conversation tomorrow for bank earnings as well. meanwhile, a singapore company is going public in the u.s. through the largest ever merger with a blank check company. the ride-hailing and food delivery serv

a brick wall there's been 10 spac ipos this month. 90% of all spacs, he thought the spac name is wientdsing down. what's kind och the take away here or is it just this is an accountsing flub that will blow up in a big way. >> they have so. i guess not total surprise there because last month was such a blow out and last quarter was a blow out the thing that's interesting to me and don't forget the i vester banks have capital markets this was big part of it last quarter. if there's more of a pull back in spac activity, if that's correlated with or also causing a pull back in other capital market activity, doesn't seem that way so far based on comments from the ceo yesterday. they weren't saying this boom will continue forever. they weren't warning us off another good quarter to come whether the spac part grows down sdplp maybe that's the way the tie it together what's been this collapse and what's been going on with the spac there's kind of not froth coming out but maybe people taking a breath here. >> this is the key difference to me between traditional ipos and spacs. they have to look back

., spac's. what kind of spac do you have over there, how does it work, do you expect that to continue? marek: spac's are quite new for us and europe in general. the first spac in the continent was 10 years ago. we had very strong price equity industry fostered by the state. not only general partners but also limited partnership. actually give the retail investors access to capital and private equity investors and public companies in a cheap manner. service in the mix of private equity venture capital funds are served by large institutions plus a little bit of a retail investor joined by a stock exchange. this will continue because it is a little bit of a challenge for us in spac's due to some regulatory constraints and also limited access to shareholders assembly. they are not ready to participate. it does not make sense for us to have spac's. it will be structured classic private equity venture capital. alix: do you think the rule be changed to make spac's more appealing? it looked like the u.k

you have to say it is a key way spac's raise money. it entices new investors because it increases the potential for returns they could see down the road. in these new accounting rules, if they meet the criteria, some of these warrants cannot be recorded on balance sheets of companies as equity. instead, they are going to be liabilities. what that means if the price changes, these companies will have to keep track of that. and if the value of them changes enough, then companies are going to have to restate the financial report. you can imagine what a headache that will be for accountants, lawyers, anyone on these spac deals. it signals more scrutiny is coming from regulators. the sec has told accounting firms that until these warren rules are figured out, it is likely that will not approve anymore filings which means the pipeline of hundreds of spac's might be put on ice until these kinks are worked out. manus: 550 spac's expected to go public this year. i have no idea what the tax is on warrants. i would be curious to know. dani, was t

look, in terms of broader money into the spac market, if -- it is a spac, but trading on the fundamentals of the company, in spac land, there have been a lot of issues with essentially the pipes that are funding a lot of these spacs and the punctuation on how emphatic the investors have been on the deal or not i think the pipe market is going through some pain right now. i think there is a lot of deals out there. there is a lot of indigestion there is a lot of folks that are pulling back and thing is a lot of folks in the capital market side that are pulling back on those deals because they don't see an appetite >> yeah, karen, you also -- you all were talking about this on the call earlier today but karen, what specifically are you seeing >> i'm seeing what tim's seeing, which is the pipes, so a spac, they may sell shares to the public, but also they want to have investors that they know will vote with them. and those are called pipe investors. i think it's private investment and public entities i think is the acronym. so they help secure the deal and get more money and enable the sponso

why do the spac? why now? >> why now is the perfect time when you look at what is happened during the pandemic with a lot of smaller wineries struggling there's over 10,000 wineries in the u.s. and there was a recent study saying over half were willing to sell. accessing the public markets right now to bring extra capital in to be able to acquire because if you look at our track record, we have been able to acquire 20 companies in the last ten years. it is a perfect time to access public markets. >> and is that the idea to use the proceeds people don't know vintage wine estates. they know the brands you have many others is the idea to continue to roll up and scale up other vineyards? >> absolutely. that's been our model for the last 20 years. as i said, 20 acquisitions in the last ten years what we see now is we can go and not only accelerate our organic growth, but we will have a 9% organic growth we will do that in the past and in the future. and then a rollup. we could have two tohree acquisitions a year. i

you know this thing going to go down it's going down and ponzi go boom that's our 1st headline the spac market is in the process of detonating and it will take the ponzi sector with it this is a piece written on wall street dot com specs are special purpose acquisition companies and they involve these pipes which are private investment and public equity so there's you know any time you have more than one shell when you're having to you know maxis to be a magician in times square and if you have to start doing all that sort of maneuver and moving the shares over there on that over there and this over there but you have a shareholder you the retail person are going to get rich right that's usually a sign that there's something going on well this is arguing that the whole stack market and last year in 2020 they went blue they exploded and the amount just like in 1990 saw a huge rush of i.p.o.'s in the dot com bubble well he said. this is similar to that dot com bubble where you have schemes of all these promoters and people pushing these facts and there they have insider shares that they g

and another name in the space sector that i would flag is the spac, sector acquisition spac that's taking rocket lab public. rocket lab announced its next mission for next month they announced it yesterday afternoon. it's going to be a mission in which they look to bring back their rocket booster as they continue to ramp up efforts around reusability they get to the place of reusing the rocket booster, they'll only be the second company in history to reuse rocket boosters for orbital launches it's already doing missions. when you look at that spac and where it's trading, it hasn't been particularly strong i think it's trading around $11 a share to your point, david >> yeah. well, we're keeping a close eye on many of these at least it's up a number are responding hardly at all to their deals. morgan, thanks up next, black stone is with us. "squawk on the street" will be right back ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> welcome back here is your cnbc covid update at this hour japan announced it's raising the coronavirus alert level in tokyo ahead of the summer olympics t

arash, take us through this deal, it's hard to say spac and deal in the same sentence? >> exactly, dominick, everything that we've been hearing in the last few weeks, the pipe, the private investment equity with these deals, and with the shares and yet we get this news that grab, which is a single-core company with business across southeast asia, offering everything from food delivery to ride hailing and most importantly financial payment to diverse populations, it's with the merge with the spac and it will have a $2.5 billion pipe. 1.5 is coming fromm altimir itself and with the companies, the spac market is open >> can you take us through, arash, you mentioned some of the businesses that grab is in what is it that makes this company so valuable? so attractive? why would investors want to get into it? and should they -- they're an asian-based company, they'll be listed here in the use, what should we in the u.s. want to know why grab is worth $5 billion? >> it's a basic concept because it started as a copycat to uber but it quickly morphed beyond that went into food de

again, these warrants are key part of the spacs. bloomberg news learned as ecb on reaching out to a lot of accountants last week. when one asked for specific guidance on how rules apply, the sec issued a statement, which came out around the close of trading in the latest session. the evaluation of accounting for contracts, such as warrants issued by a spac required careful considerations of facts and circumstances. those close to the matter say not all warrants would be affected but it is expected to be a widespread issue and a major headache for accountants and lawyers hired to ensure these blank tech companies are in compliance with the sec. rishaad: it is red-hot, we have 300 spacs launch and u.s. exchanges in the first quarter and a whole load in the pipeline. this attention from the sec could have an impact on the market? >> absolutely and it could disrupt filings waiting to come to market until the accounting issue is resolved. some analystss have said the sec is signaling it is not going to approve the paperwork until the iss

the excitement of spac is cooling. check out the spac 50 index. before they formally announce a deal and to talk more about spac and m & a activity we have the global head of citi. mark, m & a is booming how much of that is a function of the spac market and how much of that will continue? >> andrew, thanks for having me. listen, what you see here is about 58%. my numbers will be a little different than yours $1.4 trillion volume over $200 billion of that is spac market. notwithstanding that the incredible quarter for spac, although slowing now, it pass 50%. separate that out it was roughly $1 trillion. fastest to $1 trillion regions are up in a big way. six of the nine industry groups we follow are double what they were year-to-year basis. all are strong on volume of spac. >> mark, you personally, are a barometer of pure confidence in the boardroom, confidence in the corner office. ceos only usually make deals when things are going great. they should when things aren't they typically do when things are going great. in terms of the barometer and ho

folks, companies like open door, sofi, grab, reinforces the power of the spac. the real innovation of the spac and jon sort of mentioned why it's important here is, you get to spend a lot more time with buy side connect and communicate with them in a way not possible d dpud during a 30-minute road show jon said a super apps. not just ride hailing and food delivery but so much more. that is important and will serve them well soon i think. >> and that super app grab in geographic area is particularly important when the likes of uber stepped back a bit from those global ambitions sure, still have global ambitions but these aren't the days of, like, five or more years ago when pushing into china, pushing into all of these geographic areas and doing driverless cars, et cetera, et cetera seems there really is an opportunity for the smartest local companies to make headway and form relationships barriers to entry for the bigger guys seen it being successful in recent years, right? >> 100% agree. 5n, a little more than that, ten years ago, all of these folks have to go

spacs have raised money and have a great partners for us. such as the merger we did. if the market closes, we will hold the companies for longer and stay invested. we will find an opportunity. sonali: there has been fascination with blackstone moving from the traditional buyout firm to a growth investor. a lot of these investments came out of traditional buyouts, right? what does this speak to the private equity 2.0? what does this mean about the next wave of private equity investing? martin: compared to the environment i grew up in, private equity firms have invested more in the capabilities. we have made a tremendous investment. we have folks like jennifer morgan who joined us for a time. we have a great it is science. -- data science. there is a lot of benefit for cross collaboration with blackstone, our real estate group, or joint investment between private equity funds and growth funds and other funds. we bring these people in and that allows us to grow the company's at a faster rate. in this environment the leverage as less for returns. matt: that was martin bra

spac can be great -- such as the merger we did. i would emphasize -- if the market closes, then we close the companies for longer and continue to stay invested and ultimately -- guy: blackstone senior managing director and cohead of u.s. acquisitions for private equity. the private equity group within that business. let's stay with m&a. global volumes reaching $1.4 trillion in the first quarter of 2021. it accounts for 70% of all the deals. joining us is carried coachman -- cary kochman. sonali basak has also stopped by. there is an m&a boom. spac's are a big part of that. you get a sense that story is now starting to slow down. do you think there are concerns growing about what is happening in the spac market? cary: in general the market has rebounded incredibly from where it was in march and april, which was a standstill. the volumes you are talking about are incredibly robust. in terms of overall activity, spac for the first quarter accounted for just under 13% of level activity. there of a lot of spac ipo's, a lot of capital ra

let's turn to the spac market. tops best known for baseball cards and bazooka candy will go public through a blank check company. you're probably woerndsing how a company like this one faired tops net sales up 23% in 2020 to about half a billion dollars >> this is a huge story play here they are buying company that really bit in but the two major trends this company has been playing around in that space for about a year now a lot of people with that extra free time turned trading sports cars that's been another big story we have covered on this network here you go. you have a combination of those trends, great story. >> dom, spacs, nfts, gum it just feels like a bubble. >> it's so many letters. it's like an alphabet soup between spacs and nfts a great part about this story that's the reason why it fascinated me is that jason is a guy who specializes in distress investing when it comes to credit markets this is toetsly not distress at all. it's the other end of the s spectrum the real fun part will be in the future

grab is going public via spac. the ride handling company is merging with altimeter the deal values grasp at $39.6 billion. the biggest blank check deal ever after the combination, grasp will trade under the ticker grab grab has ranked as high as number four on the disrupter 50 list this is a huge deal and we should tell you that grab's founder anthony tan is joining us here on the program in just a little bit at 6:30 eastern this is the equivalent of uber and instacart and uber eats and banking. they do everything they own their market in a remarkable way it will be fascinating to see how this trade and watching the stock up 6% this morning >> reopening trade if you look at uber's latest numbers. incredible when people are totally reopened, how bright is the future for all these things? pretty bright. >> pretty bright for a lot of them quick comment on this particular transaction. you know i've been critical often times of spacs in large part because the sponsors don't stick around credit and kudos to altimeter and

that's how many new spac deals were completed in march. a new record according to data from spac research issuance has plummeted so far this month dropping to just 10 after the s.e.c. that issued guidance and spac guidance as liabilities did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company. >>> welcome back it seems that everybody has some bubbles on their minds these days prices rising from lumber and corn and dogecoin. it is hard to know at any given moment in time you are in a bubble it may not seem like a bubble at the time or they may seem to be everywhere we thought we would play a game to start the morning with our friend caleb silver. we will call it bubbles, bangles

big news in spac world we'll dive into all of it. back in a moment ♪ ♪ the moxie showerhead speaker. only from kohler. lately, it's been hard to think about the future. but thinking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones. just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪ ♪ the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust thei

spacs a big part of that more spacs public first quarter of this year than all of 2020 combined since then we've seen the s.e.c. starting to throw cold water. cold water on this -- entity, or i guess on this trend, and investors cooling, too how key is that piece of the puzzle going to be to investment banking moving forward and guidance we get? >> i could easily see spac revenues ebbing and flowing some at a record pace now really, the spacs are a result of the fact we had a record amount of investment in the private companies by individuals and primarily private equity the question, how does that get released into the public market. if not spacs, back to traditional ipos i think investment banks will be in the middle of that. it's a method of raising capital for private companies. it's not the sole pact i would not be surprised to see adjustment how it's executed, but the process of the private companies coming into market has to happen in some manner. >> seen a rise in rates. i realize we're still at near his historical lows. what does that do to mortgage lending? >> mortgage lendi

i would encourage people to look at the management teams on those the spac boards and also on the de-spac, are they really ready to be there? i think that is going to be the stamp of approval. and i expect regulators to focus on that and there might be some changes focused on that. but i think that's the next stage, and as i call that spac 2.0. >> we'll talk more about you and maybe iron spark, but good to have you on today. that will be a discussion in the future, amy, thank you former nyse cfo at iron spac -- iron spark i said iron spac that's a freud yian slip spark. spark. >>> coming up operation hope and surveymonkey coming together with a new survey for minority businesses we've got results from john hope bryant and zander lurie. and a new show "techni check" a new show at 11:00. you do not want to miss it eye kicking off with airbnb and more all happening at 11:00 a.m. this morning. "squawk" continues after this. >>> welcome back to "squawk box" this morning our next guest met for the very first time here on "squawk," that meeting led to a new survey of minority owned businesses, k

so jason, for spacs, who is doing the due diligence or who should be? >> i mean, obviously anybody who buys the shares and anybody involve in the company or involved in the deal should be doing diligence. everybody from a retail investor to the promoter -- >> what about the -- >> the promoters are super responsible. so -- >> but, jason if they -- >> hold on, you asked me a question, let me finish the answer if you're looking at somebody like chamost, active, and at the top of his game and we're besties, so take it for what it's worth, there's somebody be that will work on this for 20 years. you have people who are retired -- >> but he's not -- >> those people are very different. >> okay. but jason, you bring up chewmass, and he was a sponsor >> yep. >> he did a lot of due diligence but he's also selling shares the person doing due diligence is the one selling isn't there a conflict of interest there do you think there needs to be a longer lockup period you say he's in it for the long lun. >> i think it depends on the company and all of this is public in

this is after it completed its spac merger with dmy technology 2. joining is the genius sports co-founder and ceo congrats on despacing as we call it, i guess. back in october, october 27th when the deal was announced, you put out your projections and i just wonder are you still expecting roughly 238 million in revenues in 2022 and $68 million in group adjusted ebita >> yeah. we are forecasting in the last investigation we put out the business is performing very well it's performing as expected. and we are regrettably excited about completing the merger and completing the transactions. the stock exchange and the options that it brings to the business >> well, what opportunity does that bring to the business >> so you know, i mean, i've said it before the reason we wanted to go public and wanted to trade on the new york stock exchange was to give us access to paper and access to currency that allows us to super charge our growth. we think of growth in two parts. there's a lot of organic opportunity. increasing our technology staff that we have drivin

it's one of the original members of cnbc's spac krc index. the index is up a quarter of a percent or so. >>> shares of roblox jumping roblox has surged since its public debut just over a month ago, up 8% today. >>> speaking of public debut, crypto rally showing no sign of showing down bitcoin hitting a record high, surpassing $63,000 this comes ahead of coinbase's listing tomorrow some on wall street are going all in ahead of its debut. it has a $600 price target today. some firms are expressing caution with new constructs which analyzes ipos saying coinbase's valuation of $100 million remains ridiculous suna, as i understand it, you're not an investor in coinbase but probably a lot of other companies like it. how pivotal of a moment is this ipo for you? >> yeah, absolutely. thanks for having me on, sara. i have been an investor in this space for the last four years and we haven't seen anything like this either listing or ipo in crypto. but frankly, in tech, period, this is one of the largest listings the important thing to remember is that t

will the sec take scrutiny on different parts of spac's? it hinted that it would look at spac's much like they look at ipo's. they would not get special regulatory treatment. i think there is a sense that because this is becoming so dominant, the sec has to make sure that everyone is playing by the rules and that the rules are fair. anna: i'm sure they will get a lot of scrutiny. dani burger with the latest on the potential or the accounting threat that could see something becoming a liability. coming up on the program, buckle up for inflation with bond volatility thrown in. this is the view of laura cooper. this is bloomberg. ♪ anna: welcome back to the european market open. 52 minutes into our trading session. it is eight minutes before 9:00 in london. modest gains across the european markets. we are waiting for inflation data out of the u.s. that is the big news anticipated for the day. let's speak with laura cooper. good morning. inflation data do later on. there has been so much said about this inflation print and how high it is goin

the number of spac debuts have plummeted. there are a mere 6 spac listings in the second quarter. by this point in the first quarter there were already 55. according to a goldman sachs report spacs that have listed have largely under performed. you can see the spac index down about 17% in just two months the s&p 500 is up. they have sold $265 million worth of spac shares over the last 30 days alone what's behind the recent souring on spacs, andrew number one, retail investors are putting less money to work there with in flows from individual investors down according to b of a. spacs have sold off with other growth pockets in the market lastly, perhaps most notably, the sec has put out several statements recently involving financial projections that counting concerns related to spacs that have put a halt on this market. guys >> so how much of it is an issue that's just simply confronting new spacs coming to market and how much is this confronting an issue of those spacs that are already in market but are still looking for acquisition targets and looking to effectively create a desp

surge in spacs. the problem they're going to run into is lack of targets, lack of viable targets if you remember 20 years ago, we had a very robust market until it stopped in its tracks i'm not saying the spac market will do that there will no doubt be good deals that come out of it. but finding targets is very, very difficult when in terms of the m & a business, when it became a business that, was the most difficult thing to do, try to develop options for clients. they'll have the same problem. when they get to the point where they want to do a deal and where it's based on projections and it's very iffy, they won't be able to get the pipe finance >> so here's the question, eric, though you know, i keep getting told i'm a debbie downer when it comes to spacs because i've been writing and talking about some of the problems that i've seen with spacs not because i don't want spacs to succeed, but because i -- my hope is actually that if some of the disclosures and other things come out, maybe they can g

happened to the enthusiasm for fuel cells and gambling and spacs and disruptive technology? did the people who loved game stop and amc more than life itself somehow vanish into thin here some of this is just the sector rotation with money managers doubling, those formally hot stocks for the great reopening plays but that doesn't explain where all the newly empowered individual investors, remember, the da mocktized investors part of it is buyers got too aggressive the stocks were doing so well people switched to call action with juice were bought with borrowed money when things started to break down, they had no staying power. just like when it got the margin call of a lifetime there wasn't much capital so they couldn't put up more money because it's what you have to do when you buy stocks on margin and they get hammered. for the ones that bought call ap actions, their margins were completely wiped out that's quite the learning experience, isn't it i think it explains why the new stimulus checks didn't lure many people back into the wall street casino they worked through thei

they do so through spacs to help finance their acquisitions. juliette: our hedge fund reporter with us. let's get a check of the latest business flash headlines. bloomberg has learned that dell technology is looking into the cloud business and its latest effort to trim down. sources say it went up to $3 billion. they have different cloud platforms for the companies. spinning off its sake and vmware, which is the most valuable asset. facebook faces a formal probe by its main privacy regulator in the european union, following the personal data of more than half a billion of its uses. the probe will determine whether the company has complied with the privacy mandate. amazon has outlined instead of hiring promotion targets to boost the number of women in black employees and its senior ranks. includes 30% rise in the number seen at technical jobs for women. as well as doubling the number of black employees in the united states. the commitments are unusual for the company, which really -- rarely discusses its workforce makeup. city capital partners i

i don't think that will affect the spac market. the spac market is overdone in terms of number of new issues. extraordinary, never seen anything like it and a lot of those deals will flounder and a lot of these companies will be looking at a lot of same companies looking at a lot of the same companiesp haven't look leery how much they spend for the top targets. the sec is looking at a lot of the underside what is going on. so i think they will be a little bit on the downside for some time to come. charles: courtney, on one hand we have record amount of money printing by the fed. fiscal stimulus going out, endless supply, endless spacs, has the oversupply hurt the money coming in. >> quite possibly. as you're continuing to see people receiving things like their payments that are coming in, you are going to maybe start to see this go back into the markets. i think looking at markets long term, profits will become so much more important, especially inflation kicking in and dividends become more important. a problem with the lot of ipo

repeat spac issuers, grownups, people who aren't -- quite literally, one spac out there is marketing off a 2027 profit nu number i think the people doing rational things, projections, here's a set of scenarios, if we're investing in a startup, these are scenarios. people will continue to get funded but that's the small neighborhood barbecue party to carry the metaphor too far it's not what we saw at the end of last year, beginning of this year that's not coming back. >> let's talk more about sec cracking down. we're hearing the sec is discovering more disclosure. i guess the point is about time. look, arcegos, that's a separate issue. apparently they never filed any 13d, 13f filings it's probably not a bad thing to have more disclosure going on at least for the regulators to see where there are potential bubbles and market risks that are building. >> yeah, i'm pulling together three stories. they're all related. more transparency for spacs is fine more transparency for firms like archegos is a good thing something i fought for at the new york stock exchange and ultimately threw up my

we're also starting to see companies that went public through spacs that have de-spacced so to speak, report numbered that are perhaps not met as they otherwise want to be, you mentioned romeo power for example, as we look at the bottom there, trading at 830, and remember they do the deals at 10. >> and churchill >> right >> churchill iv. >> yes >> i mean it went up there people bought that and that didn't -- >> well, it is still trading, again, i always say if you just, if it was a $10 stock moving to wherever, to $24, you would be very happy with it, it still performed very well, it's just that it happened to hit almost $60 on the way to $24. >> quantumscape, down 40%. >> but it does get me -- yes, it is and it's still a large company from a market cap perspective with a lot to come we hear from him all the time in terms of the advances that need to be made, that they are making at quantumscape, in terms of that solid state battery and where that's going to end up let's not forget, so many of these give us the projections on 25 or 26 earnings and/or revenues which is a conversation