Harry Sloan, known in Hollywood for, among other things, leading MGM in the 2000s, and former CBS executive Jeff Sagansky, have priced the initial public offering of their fifth public acquisition vehicle.
Diamond Eagle Acquisition Corp., to be listed on the Nasdaq Capital Market, will aim to raise $400 million, with plans to invest it in companies in technology, media and other sectors. Each unit issued in the IPO consists of one share of Class A common stock and one-third of one warrant to purchase one share of Class A common stock at an exercise price of $11.50 per whole share.
While it is not under the same microscope, the announcement of Sloan and Sagansky’s latest IPO plan comes on the same day Uber held a high-profile but disappointing debut as a public company. Shares closed at $41.57, down 8% in an unusual dip for a new issue, which had already been in a conservatively priced initial range. The disruptive transportation start-up had to contend with roiling cross-currents in the markets Friday, including an escalation of U.S.-China trade tensions, which played a key role in declines across all major stock indices.
DraftKings To Go Public In $3.3B Merger With Diamond Eagle
The new entity led by Sloan and Sagansky aims to be able to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, according to the announcement of the IPO. Diamond Eagle’s sponsor is Eagle Equity Partners, of which Sagansky is a member. Its President, CFO and Secretary is Eli Baker, who served in management roles in other previous public acquisition vehicles launched by Sagansky and Sloan.
In addition to MGM, Sloan has been involved with New World Entertainment, SBS Broadcasting, and Lionsgate Films over the course of his career. Sagansky, in addition to serving as entertainment president at CBS in the early 1990s, also had executive stints at Tri-Star and NBC.
Variety had the first report on the pair’s newest IPO plan.
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