(Bloomberg) - The disparity in valuations between private and public markets for innovative companies is creating an “enormous” arbitrage opportunity, Ark Investment Management LLC founder Cathie Wood said in a tweet Wednesday.
Wood’s comments come after spare-change investing and checking account app Acorns Grow Inc. and Pioneer Merger Corp. announced they would cancel their $2.2 billion blank-check deal to go public, citing “market conditions”. Acorns Chief Executive Officer Noah Kerner said the firm would instead pivot to a private capital raise at a higher pre-money valuation.
The move from Acorns is the latest in a growing list of companies which have decided to drop SPAC mergers in recent months, including Wynn Resorts Ltd.’s online betting unit.
By Leonard Kehnscherper
