Casper’s CEO is filing for a blank check company. What does he plan to buy?
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Earlier this year Philip Krim took his bed-in-a-box mattress company, Casper, public. Now just six months later, Krim is seeking to take another business through the process via the summer’s new frosé: the blank check company.
On Tuesday, Tailwind Acquisition, a blank check company formed by Krim and venture capitalist Chris Hollod, filed to raise $300 million through an initial public offering. So-called blank check companies get their name because they are usually set up with the express purpose of acquiring a still-yet-to-be named company.
Tailwind plans to target a tech company with an enterprise value of between $750 million to $2 billion and a focus on “founder-led late stage growth equity opportunities in the high-growth technology and direct-to-consumer ecosystems,” according to the filing.
“COVID-19 has proven to be a catalyst for growth for our potential target universe, pulling forward digital consumer trends and adoption across several consumer categories,” the filing stated.
While Tailwind’s filing boasts of leveraging Krim’s expertise, himself having taken a digital consumer brand public, it’s worth noting that public market investors haven’t been ebullient about his current company, Casper. Shares of the company now trade 38% below their debut in February even as the S&P 500 climbs to new highs. Once valued at $1 billion in private markets, Casper valuation has slid to $338 million as a series of lackluster IPOs of unprofitable, consumer-facing tech companies (Lyft, Uber, and almost WeWork) injected a dose of skepticism into potential investors.
Krim, on his part, recently reiterated plans for Casper to become profitable on an EBITDA basis by 2021.
ON THE CLOCK: On Tuesday, President Donald Trump voiced support over the idea of Oracle taking over TikTok’s U.S. operations during a speech in Yuma, Ariz. Remember that Trump placed a sell deadline on TikTok’s parent company, Bytedance. Microsoft has been the frontrunner in the deal.
Notably, Oracle’s largest shareholder, Larry Ellison, is a known supporter of Trump and has hosted a fundraiser for the president. Trump has also previously said that the U.S. government should get a cut of TikTok’s U.S. operations, should a firm stateside acquire the social media company. Read more.
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