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A team of former Walt Disney Co (NYSE: DIS) executives are uniting again with NBA Hall of Famer Shaquille O’Neal on a new SPAC that was filed Thursday after market close.
The SPAC: Forest Road Acquisition Corp II is seeking to raise $300 million by selling 30 million units. Each unit will include one fifth of a warrant. The company will trade as "FRXBU" on the NYSE as units and as "FRXB" as common stock on the NYSE.
The company’s first SPAC Forest Road Acquisition Corp (NYSE: FRX) recently announced a merger with Beachbody and Myx Fitness. The company’s first SPAC raised $300 million and included one third of a warrant with units.
The Management Team: O’Neal is a strategic advisor for the SPAC once again.
The SPAC members include three former executives from Disney. Kevin Mayer was the former Executive Vice President of the internet group, which included ESPN.com. Mayer also helped lead the direct-to-consumer strategy that launched Disney+.
Salil Mehta worked at Disney from 1994 to 2008 serving as the former Executive Vice President for the ESPN Enterprises division.
Thomas Staggs is the former Chief Financial Officer of Disney from 1998 to 2010. While serving as CFO, Staggs led Disney through acquisitions of Capital Cities/ABC, Pixar and Marvel Entertainment. Staggs served as the Chairman of Walt Disney Parks and Resorts and was a key to the company opening a theme park in Shanghai, China.
Related Link: 6 Sports SPACs To Consider For Your Investing Playbook
Target Area: Forest Road Acquisition II is seeking a target company in the TMTC (technology, media, telecom, consumer) sector.
“We believe that the media and entertainment, lifestyle, fitness, sports and live event industries are undergoing rapid and aggressive technology induced change,” the filing reads.
The SPAC group believes its team offers value to a target company in the respective sectors targeted.
Items looked at in a target company are simple predictable free cash flow, formidable barriers to entry, well positioned for growth, attractive valuation, strong management and ability to add inorganic growth.
Price Action: Shares of Forest Road Acquisition were up 10% to $12.25 on Thursday.
Disclosure: The author is long FRXU.
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