+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Shaquille O'Neal, former Disney executives, and Martin Luther King Jr.'s son target $250 million SPAC launch

Oct 10, 2020, 00:37 IST
Business Insider
Getty/E! Entertainment
  • The basketball superstar Shaquille O'Neal, Martin Luther King III, and three former Disney executives are joining forces to back a new blank-check company.
  • Forest Road Acquisition Corp. aims to raise $250 million for deals in the tech and media space.
  • Potential targets include intellectual property, "audience aggregation platforms," and "companies in need of capital," a Securities and Exchange Commission filing published Thursday said.
  • The special-purpose acquisition company, or SPAC, comes amid a frenzy for the investment vehicles. More than $53 billion has been raised through SPAC initial public offerings in 2020 so far.
  • Visit Business Insider's homepage for more stories.
Advertisement

With 2020 bringing a flood of special-purpose acquisition companies, or SPACs, it can be hard for some to stand out from the rest.

Forest Road Acquisition Corp. shouldn't have that issue, as the basketball superstar Shaquille O'Neal, Martin Luther King III, and three former Disney executives are leading the blank-check firm to launch.

The SPAC aims to raise $250 million for acquisitions in the tech and media industry, including intellectual property, "audience aggregation platforms," and "companies in need of capital," a Securities and Exchange Commission filing published Thursday said.

O'Neal will serve as the firm's strategic advisor and is described in the filing as having "a keen eye for investing in successful ventures." King, the eldest son of the civil-rights icon Martin Luther King Jr., will work as one of the company's directors.

Read more: Fund manager Brandon Nelson is tripling his benchmark in 2020 with 'less-discovered' companies that become big winners. Here are 3 themes and 9 stocks he's betting on.

Advertisement

Tom Staggs, a former chief operating officer at Disney, will serve as the chair of the SPAC's strategic advisory committee. Salil Mehta, a former Disney strategy executive, will be Forest Road's chief financial officer. Kevin Mayer, a former TikTok CEO and chief strategy officer at Disney, will serve as a strategic advisor; Mayer also led the launch of Disney Plus in November.

The team's "distinguished and long-term track record of sourcing, acquiring, and building next-generation media and entertainment platforms" will aid the SPAC's leaders in providing "differentiated consumer insights and sourcing opportunities," the filing said.

Read more: Buy these 7 stocks poised to profit from the boom in packaged-food sales as COVID-19 prompts more Americans to cook at home, Stifel says.

So-called blank-check companies raise cash through an initial public offering with the intention of merging with a private firm and taking the combined entity public. Investors who buy into a SPAC's IPO are typically in the dark as to what company will be targeted.

While some have hailed the vehicles as a better way to take companies public, others have said SPACs are too lightly regulated.

Advertisement

More than $53 billion has been raised across 138 SPAC debuts in 2020, trouncing the $13.6 billion raised last year, according to SPACInsider.com. The average IPO size has increased to $388 million this year from $230 million.

Now read more markets coverage from Markets Insider and Business Insider:

'A paradise for growth investors': A Baillie Gifford fund manager overseeing almost $2 billion explains why investors are underestimating Japanese stocks — and shares his 3-part strategy for picking winners

Xilinx soars 17% on report rival AMD is in talks to buy it for $30 billion

Billionaire investor Bill Ackman offers new hints on possible targets for his record-breaking SPAC

Advertisement
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article