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  4. An Ex-Uber executive joins the SPAC frenzy, and Google's former CEO Eric Schmidt is among its special advisors

An Ex-Uber executive joins the SPAC frenzy, and Google's former CEO Eric Schmidt is among its special advisors

Shalini Nagarajan   

An Ex-Uber executive joins the SPAC frenzy, and Google's former CEO Eric Schmidt is among its special advisors
Stock Market2 min read
  • An ex-Uber executive has joined the special-purpose acquisition company craze and one of its special advisors includes former Google CEO Eric Schmidt, an SEC filing on Friday showed.
  • DPCM Capital, owned by Uber's former head of business Emil Michael, seeks to raise $250 million in an initial public offering to acquire a company in the technology sector.
  • Other special advisors to Michael's company are early Uber investor Shervin Pishevar and serial investor Betsy Atkins.
  • About $48 billion has so far been raised across 127 SPAC IPOs in 2020 so far, according to SPACInsider.com
  • Visit Business Insider's homepage for more stories.

Former Uber executive Emil Michael has joined the SPAC euphoria after filing for a public offering of $250 million for a tech-based blank check company.

On Friday, Michael registered plans with the Securities Exchange Commission for his company, DPCM Capital, to sell 25 million units at $10 each and applied to list on the New York Stock Exchange under the ticker symbol "XPOA.U."

He was a long-time head of business at Uber and part of then-CEO Travis Kalanick's inner circle, but resigned in 2017 after being involved in investigations into the company's work culture. He did not provide a reason for leaving the firm behind the eponymous taxi app.

The filing counts a striking list of special advisors including Google's former CEO Eric Schmidt, early Uber investor Shervin Pishevar, and serial investor Betsy Atkins, who serves on several boards including Las Vegas casino Wynn Resorts.

Read More: MORGAN STANLEY: Buy these 16 stocks to cheaply invest in next-generation technologies and reap the future profits they generate

DPCM is the latest entrant to the SPAC route, joining a list of other high-profile investors including Bill Ackman, Chamath Palihapitiya, and Richard Branson. UBS Investment Bank is the underwriter to the company's offering.

SPACs, which provide an alternative route to a public stock listing, are enjoying a surge in popularity this year. Ordinarily, it is meant to raise money in an IPO to buy and merge with an unknown company.

About $48 billion has so far been raised across 127 SPAC IPOs in 2020 so far, according to SPACInsider.com. That pace is more than triple last year's $13.6 billion in proceeds through 59 deals.

Read More: A Wall Street expert says a trend with a 30-year track record of wrecking expensive stocks is flashing for big tech — and warns investors to brace for a turnaround within months

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