Shares of dMY Technology Group III (DMYI) jumped as much as 26.8% in trading on Wednesday after Bloomberg reported that the company is in talks to merge with IonQ, a quantum-computing company. Shares fell slightly in afternoon trading but were still up 17.4% at 2:50 p.m. EDT.
Based on Bloomberg's reporting, IonQ could merge with dMY Technology Group III with a total valuation of about $2 billion. Silver Lake, MSD Partners, and Bill Gates' Breakthrough Energy are among the groups discussing being part of the private investment in public equity (PIPE) deal, or additional funding that's added to the company prior to the merger.
Neither company has commented publicly, and merger announcements can take some time to materialize. But the report did indicate that an announcement would be coming in the next few weeks.
Traders can often push a stock higher when a special purpose acquisition company (SPAC) merger is announced, and it looks like that's what's happening today. We don't know any real details, and a deal hasn't officially been announced, but speculation alone is enough to excite investors. I would tread carefully with today's hype because if a deal falls apart or terms aren't to investors' liking, this SPAC could drop as quickly as it popped today.