DraftKings CEO sounds alarm on SPAC market: ‘Hopefully the market settles down a little bit there’

DraftKings CEO sounds alarm on SPAC market: ‘Hopefully the market settles down a little bit there’

The entrance from the elevators, designed to resemble a tunnel entering a stadium, is pictured at the new DraftKings office in Boston on March 25, 2019.David L. Ryan | The Boston Globe via Getty ImagesThe SPAC market may be getting frothy. Just like in entertainment, when network executives copycat a hit show format until the market is saturated, investors are flooding the market with special purpose acquisition companies, or SPACs, to scout private companies to take them public. The boom started earlier this year, when companies such as electric vehicle company Nikola and DraftKings saw their valuations soar once they became public through SPACs. The reaction was eye-opening for investment professionals, who suddenly viewed SPACs as a viable option for growth companies."Historically, growth companies wouldn't have been thought of as SPAC candidates," said