The Prof G Pod with Scott Galloway Prof G Markets: The Demise of Chamath’s SPACs, Citrix’s Debt Deal, and Adobe’s Figma Acquisition
4 snips
Sep 26, 2022 
Ed Elson, a ProfG Media Analyst, and Jason Stabbers, Editor-in-Chief, join to unpack some market turbulence. They dive into Chamath Palihapitiya’s shuttering of his SPACs and the ripple effects on investors. Ed explains how Wall Street banks are grappling with a hefty $700 million from Citrix's leveraged buyout. The conversation heats up as Jason reveals why Adobe made waves by acquiring Figma for a staggering $20 billion, reshaping the future of digital design and collaboration.
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Chamath's SPACs
- Chamath Palihapitiya, the "King of SPACs," closed two SPACs worth $1.6 billion after failing to find target companies.
- This raises concerns about SPACs as investment vehicles, especially given Chamath's frequent promotion and subsequent selling of SPAC-related stocks.
SPACs and Retail Investors
- Chamath promoted SPACs as democratizing access to high-growth companies for retail investors.
- However, many of his SPACs, such as Virgin Galactic, Opendoor, and Clover Health, have significantly declined, harming retail investors.
Citrix Debt Deal
- Wall Street banks lost $700 million on debt from the Citrix buyout due to rising interest rates.
- This demonstrates the risks of underwriting deals in volatile interest rate environments, where banks take on the responsibility of financing acquisitions.
