Special acquisition companies, known as SPACs, have been all the rage in the investment world for the past couple of years and have taken their place in the media space, but is the trend slowing down?
Known as a “blank check company,” the SPAC is a publicly traded investment vehicle that raises capital only to acquire existing companies. They are often pitted against a well-known figure and are seen as a simpler alternative to going public via an IPO. They can also provide all investors with the opportunity to take advantage of the high growth some companies are experiencing in their early years. At the same time, of course, a failed debut can result in a significant loss.
In some cases, SPACs will be announced with specific investment objectives in mind, such as when Virgin Galactic successfully completed the SPAC merger in 2019 and initiated a trend of similar efforts over the past two years. In other cases, SPAC will start working without disclosing specific objectives, but will instead provide investors with information about its broader strategy.
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Last year, Shibashish Sarkar, former CEO of Reliance Entertainment, one of the biggest names in the Indian media landscape, left the company to open its own SPAC, International Media Acquisition Corp. The company aims to make significant progress in the space of local entertainment and had a successful initial public offering of $ 230 million on Nasdaq in August. In an interview with Deadline in December, Sarkar said he is aiming for the acquisition in three areas and will conclude the first deals before the July 2022 deadline. “We want to be active in three areas: in production companies, from cinema to television. or animation, to create the largest content company in India; Exhibition space, where the goal is to be one of the main players in the sector, the third or fourth largest; And the ability to take an important position on the platform streaming, “Sarkar said.
Also last year, Iris Knobloch, former president of WarnerMedia Europe (and recently announced president of the Cannes Film Festival), left the company 25 years later to launch a $ 300 million SPAC through Euronext Paris with backing from the billionaire. . . Pine Sagebrush. Referred to as I2PO, the company is the first of its kind to target the European entertainment and leisure industries. “Europe is home to many strong companies with high potential in this industry, which will be supported by I2PO’s capital, resources and experience to take their business to the next level,” Knobloch said at the time. “I see a great opportunity to consolidate the fragmented market and move to other markets outside of Europe.
I2PO recently confirmed its first deal: a $ 1.1 billion merger deal with French music streaming service Deezer in public. Pino described the move as an opportunity to “develop Deezer as a leading independent music streaming platform in key markets with strong positions.”
However, there have been many cautionary stories in SPAC space over the past 12 months.
Former Disney executive Kevin Mayer and Tom Staggs, along with retired basketball star Shaquille O’Neal, raised $ 350 million in March last year for SPAC Forest Road Acquisition Corp II and quickly entered into a merger deal. with fitness companies The Beachbody Company e. Myx Fitness Holdings Public. After the initial payment, the merged entity’s value fell 80% and struggled to recover, which serves as a warning that even these large capital transactions could deteriorate.
Buzzfeed, a digital media company, posted a post about its merger with SPAC in December, but its share price was low. Following an earnings report released in the first quarter of this year that fell short of what the company promised investors during the launch of SPAC, pressure from those who bought the shares led to Buzzfeed downsizing. News, and some are likely to call the CEO Jonah Perez e. The news team of the award as a whole.
For its part, the Buzzfeed example appears to have suggested several other digital media companies to implement their proposed SPACs. Long speeches about Vox Media and Vice Media broadcast publicly via SPAC have been hushed up in recent months.
There may have been a lot of water for SPACs last year, but the trend appears to continue. OnlyFans, a social media platform famous for its adult content, was in talks to make a public appearance through the SPAC merger, and big Asian sponsor Jason Wong, known as the “godfather of SPAC” in Asia, had just expected that Hong Kong would continue to exist. In 2022, 40 empty investment vehicles were put into operation in the city.
Source: Deadline

Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.