[CEO of Airbnb] told Reuters his company has been approached about a merger with a so-called blank-check acquisition company.
The arrangement is defined as a development-stage company that lacks a business plan or one that is based on a merger or acquisition of another company, makes the offer. Typically, these blank-check companies are referred to by the Securities and Exchange Commission (SEC) as penny stocks, or speculative securities that trade for less than $5 per share, according to Investor.gov.
[a special purpose acquisition company (SPAC), another phrase for blank check companies]
“We’ve been approached by some people that have presented us some opportunities” … In an interview with Bloomberg Television last month, Chesky [CEO] mentioned the possibility that Airbnb might go ahead with its launch to become a publicly-traded company.