Mark Pincus, Reid Hoffman Launch Third SPAC: What You Need To Know
Two legendary investors are launching a third SPAC to find a high growth private company that can benefit from their experience.
What Happened: Mark Pincus and Reid Hoffman filed to launch Reinvent Technology Partners Y (NASDAQ:RTPY) on Friday. Units will trade as RTPYU and include one common share and one-eighth of a warrant.
Pincus is the founder of Zynga (NASDAQ: ZNGA), a mobile gaming company. Hoffman founded LinkedIn, a professional social networking site that was later sold to Microsoft Corporation (NASDAQ: MSFT).
The duo were both investors in Facebook Inc (NASDAQ: FB), Twitter (NASDAQ: TWTR), Airbnb Inc (NASDAQ: ABNB) and Epic Games. Hoffman and Pincus have years of experience in social networking and games.
The Reinvent Technology team also includes Michael Thompson, who managed over $1.9 billion in assets for BHR Capital. Thompson was also active in helping Six Flags Entertainment (NYSE: SIX) emerge from bankruptcy.
The third SPAC from Pincus and Hoffman adds to the two existing SPACs from the group. Reinvent Technology Partners (NYSE: RTP) raised $690 million in July 2020.
Reinvent Technology Partners Z (NYSE: RTPZ) raised $230 million in October 2020.
All three SPACs are seeking to find a target in the consumer internet, mobile gaming or technology sector. The SPAC leaders plan on providing protagonist capital and to continue helping management after a deal is completed.
Related Link: 10 Top SPAC Picks For Investors To Consider In 2021
First SPAC Could Be Nearing Deal: The third SPAC from Pincus and Hoffman comes as their first SPAC has been the subject of several rumors.
Reinvent Technology Partners is rumored to be taking insurance company Hippo public, according to Bloomberg. The deal could value Hippo at $5 billion.
The first SPAC from Pincus and Hoffman could acquire air taxi company Joby Aviation, according to Financial Times. The deal would value Joby Aviation at $5.7 billion.
Price Action: Shares of Reinvent Technology Partners were trading 7.83% higher to $15.56 at last check Tuesday.
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