Billionaire investor Bill Ackman expressed his interest in striking a deal with X, the social media platform formerly known as Twitter. Ackman’s recently approved investment vehicle, called a SPARC (special purpose acquisition rights company), could potentially be used to merge with X. The Securities and Exchange Commission granted regulatory approval for Ackman’s SPARC on Friday. Ackman is an active user of X and regularly posts about various topics, including his support for presidential candidates Vivek Ramaswamy and Robert Francis Kennedy Jr.
Ackman’s SPARC offers a unique financing opportunity for companies looking to go public without the typical risks and expenses associated with an initial public offering (IPO). The financing vehicle allows investors to know the specific company the SPARC will merge with before making any investment commitments. Ackman emphasized his readiness to collaborate with X, stating that his investment firm, Pershing Square Capital Management, could become an anchor shareholder for the social platform.
However, some experts raise doubts about whether X would actually pursue a deal with Ackman’s SPARC and become a public company. The implications of being a public company, such as financial and governance regulatory transparency, may deter X from proceeding with the deal. Alan D. Jagolinzer, a professor of financial accounting at the University of Cambridge Judge Business School, expressed skepticism about the likelihood of the merger in a post on X.
In conclusion, Ackman’s interest in striking a deal with X through his SPARC investment vehicle presents a potential opportunity for both parties. Ackman’s enthusiasm for collaborating with X is evident in his active presence on the platform and his willingness to act as an anchor shareholder. However, the hurdles and complexities associated with taking X public might make the deal less feasible. Only time will tell if this merger will come to fruition.
