Hollywood executive Sagansky-backed SPAC files for $1.5 billion US IPO

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Hollywood executive Sagansky-backed SPAC files for $1.5 billion US IPO

Later last week, Spinning Eagle Acquistion Corp., an SPAC (Special Purpose Acquistion Company) or blank-check company founded by a former Hollywood executive Jeff Sagansky, had filed for a US IPO in a bid to raise as many as $1.5 billion in fresh liquidities, joining a string of SPAC-based US public listings which had raised as many as $70 billion this year, a regulatory filing with US Securities and Exchange Commission (SEC) had unveiled shortly before the Christmas eve.

Aside from that, the regulatory filing had also revealed that the blank-check firm, which usually acts as a shell company to take businesses public following merger or acquisitions, had been looking to list its stakes in Nasdaq under the ticker “SPNGU.

Former CBS Entertainment President Sagansky-backed SPAC files for $1.5mn IPO

In point of fact, latest move from the former CBS Entertainment President Sagansky to raise up to $1.5 billion in US IPOs for his blank-check firm Spinning Eagle Acquistion Corp.

followed a number of similar arrangements executed by the former Hollywood executive, while Sagansky alongside a former Chief Executive of Metro-Goldwyn-Mayer, Harry Sloan, had taken enterprises likes of sports betting platform DraftKings Inc.

and gaming firm Skillz Inc. public through SPACs (Special Purpose Acquisition Companies) or blank-check companies. If truth is to be spoken, following a SPAC route to take the companies public became a lucrative trend in the Wall Street this year, while such structures had led to a record influx of more than $70 billion in the United States this year.

Nonetheless, SPAC-backed shell companies that seek to raise money by bypassing the conventional IPO (Initial Public Offerings) route, could not issue additional shares, though, since such shell companies-backed measures could list a business for public trading in a much-shorter timeline than a traditional IPO following its acquisition or merger with the shell company, SPAC-based route into public trading in the United States had become one of the most animated trends in Wall Street this year as beforementioned.