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IPFS News Link • Business/ Commerce

World's Largest Model Agency Attempt To Go Public Via SPAC Collapses

•, Tyler Durden

Consider this: SPACs, or blank-check companies which go public for the express purpose of buying an existing firm and which also exploded in 2007 just before the housing/credit bubble burst, now make up a record share of U.S. initial public offerings this year. According to Bloomberg, SPACs have collectively raised $66.4 billion year-to-date, accounting for nearly half of all the $138.9 billion raised in U.S. IPOs (SPACs only accounted for 19% of the $71.4 billion IPO pie last year).

And while there is no stopping the blank check juggernaut absent a full-blown market crash - so far in November, the SPAC pipeline has continued to grow with 18 more filings on deck to list on U.S. exchanges - one company that won't be going public via a SPAC merger is the world's largest model agency, Elite Model World, whose merger discussions with blank-check firm Galileo Acquisition have fallen apart without a deal being reached according to Bloomberg, which reported that Elite informed investors this month that the talks had collapsed.