Billionaire investor Sam Zell told CNBC on Tuesday that some deals involving special purpose acquisition companies remind him of the speculation in internet companies during the 1990s dot-com bubble.
In an interview on “Squawk Box,” Zell said he believes SPACs do offer positive benefits for investors who buy in at the creation of the so-called blank check companies. However, the founder of Equity Group Investments said he’s worried about the fundamental business prospects for some companies that go public via a SPAC.
“If done well, it’s a very effective transaction. It’s one of the few times where the quote-unquote buyer has enormous power,” Zell said. “In other words, if you’re a buyer…