SPAC King Chamath Palihapitiya Tells Retail Investors To Stay Away From His New SPAC

Benzinga_recent_news

Oct 02

Known to some as the "SPAC King," Chamath Palihapitiya once had plans to launch SPACs with tickers IPOA through IPOZ. Those initial dreams failed, as several SPACs were liquidated without merger ...

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Those initial dreams failed, as several SPACs were liquidated without merger ...</p>\n\n<a href=\"https://www.benzinga.com/markets/ipos/25/10/47997701/spac-king-chamath-palihapitiya-retail-investors-stay-away-new-spac\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SPAC King Chamath Palihapitiya Tells Retail Investors To Stay Away From His New SPAC</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSPAC King Chamath Palihapitiya Tells Retail Investors To Stay Away From His New SPAC\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-02 23:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/markets/ipos/25/10/47997701/spac-king-chamath-palihapitiya-retail-investors-stay-away-new-spac><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Known to some as the \"SPAC King,\" Chamath Palihapitiya once had plans to launch SPACs with tickers IPOA through IPOZ. Those initial dreams failed, as several SPACs were liquidated without merger ...</p>\n\n<a href=\"https://www.benzinga.com/markets/ipos/25/10/47997701/spac-king-chamath-palihapitiya-retail-investors-stay-away-new-spac\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CLOV","symbol_name":"Clover Health Corp","start_time":0,"source_url":"https://www.benzinga.com/markets/ipos/25/10/47997701/spac-king-chamath-palihapitiya-retail-investors-stay-away-new-spac","article_id":"2572041546","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/10/02/SPAC.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/markets/ipos/25/10/47997701/spac-king-chamath-palihapitiya-retail-investors-stay-away-new-spac","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2572041546","pubTimestamp":1759419120,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Chamath Palihapitiya is back with another SPAC. 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Those initial dreams failed, as several SPACs were liquidated without merger targets, and the SPAC market lost favor with retail investors.\nPalihapitiya is back with a new SPAC, but with a new business structure he's telling retail investors to stay away.\nPalihapitiya recently launched the American Exceptionalism Acquisition Corp (NYSE:AEXA) SPAC to bring a company in the AI, clean energy, or U.S. defense markets public.\nInitially planned for a $250 million offering, the SPAC was upsized to $345 million due to strong demand.\nPalihapitiya recently warned retail investors to stay away from the SPAC or to lower their expectations.\n\"I want to temper retail investors' involvement with my SPACs. This deal was built for institutional investors. Specifically, 98.7 percent went to large institutions, each picked explicitly by me. The remaining 1.3 percent was allocated to retail investors,\" Palihapitiya tweeted.\nThe investor said this was done after learning that SPACs \"are not ideal for most retail investors.\"\n\"They are for investors who can underwrite the volatility, place it as part of a broader structured portfolio and have the capital to support the company over the long run.\"\nPalihapitiya also cautioned that he will minimize his public discussions about American Exceptionalism Acquisition Corp going forward.\n\"For anyone in the retail market who still chooses to disregard my advice to avoid SPACs, please carefully review our disclosures and make a fully informed decision.\"\nIn his tweet, Palihapitiya highlights that the SPAC has no warrants. Founder shares are not earned unless the stock price goes up at least 50% after a business combination.\n\"If the deal is a dog, no one wins. If it is a winner, we all win…together.\"\nRead Also: Chamath Palihapitiya Warns America’s Youth Face Crushing Debt, Broken Culture, Failing Schools — ‘Either Humanity Wins Or The Algorithims’\nPalihapitiya's post on X stated that no one can predict what will happen in the future. He also provides a warning to investors.\n\"No crying in the casino,\" Palihapitiya said in his post.\nThe investor gave this same warning when he brushed off the results of a poll on X where over 70% of people said Palihapitiya should not launch another SPAC.\nPalihapitiya didn't listen and launched his next SPAC anyways. While Palihapitiya warns retail investors to stay away, they might do so based on past performance anyways.\nBenzinga previously shared the performance of the 18 SPACs associated with Palihapitiya that he launched or invested in at the time of the merger announcement.\nAmong his first several launched SPACs, stocks like Virgin Galactic (NYSE:SPCE), Opendoor Technologies (NASDAQ:OPEN) and Clover Health Investments (NASDAQ:CLOV) are down from their initial $10 price.\nOf his first several SPACs, only SoFi Technologies (NASDAQ:SOFI) trades over the $10 mark, with a return of over 100% for investors.\nThe SPACs IPOD and IPOF were later liquidated, leaving many investors with negative returns, as the stocks often traded at premiums over $10.\nA series of biotech-themed SPACs listed with tickers DNAA, DNAB, DNAC and DNAD had worse results. DNAA merged with Akili Interactive, which was later acquired by Virtual Therapeutics for $0.4340 per share. DNAB and DNAD were liquidated without targets. DNAC merged with ProKidney Corp (NASDAQ:PROK) and shares trade at less than $3.\nOf the SPACs that Palihapitiya invested in through the PIPE, MP Materials (NYSE:MP) is a clear winner. Shares are currently trading over $60. Many of the other SPACs have negative returns.\nOverall, at the time of the August article, the average return for a SPAC led by Chamath was -26.24%. The average return of the 18 total SPACs associated with Chamath was -13.98%.\nWhile Palihapitiya wants retail investors to steer clear of his new SPAC due to risk and structure, they may also stay away because of his past performance.\nRead Next: \nImage: Shutterstock","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}