RedBall Acquisition Shares Fall As Boston Red Sox SPAC Deal Looks To Have Failed
A Billy Beane-backed SPAC has been linked a stake in Fenway Sports Group dating back to August. That deal has now fallen apart.
What Happened: Talks between RedBall Acquisition Corp (NYSE: RBAC) and Fenway Sports Group are over, reports Axios.
Fenway Sports Group owns the Boston Red Sox, Liverpool FC, a stake in Roush Fenway Racing and a stake in New England Sports Network. RedBall was seeking to acquire a 20% to 25% stake in the company valuing Fenway Sports Group at $8 billion.
The sports SPAC raised $575 million in its IPO and was seeking nearly $1 billion in outside investments to push the deal through. RedBall couldn't raise the additional outside funds to get a deal done, according to Axios.
Related Link: 10 SPACs Trading Under For Investors To Consider In 2021
Why It’s Important: RedBall has been linked to Fenway Sports Group back in August and could now be starting over. The company could now turn to acquiring a larger percentage of an individual sports team worth less.
Fenway Sports Group could still sell a portion of its business to an outside investor or could look to land a deal with a different SPAC targeting the sports market.
Price Action: Shares of RedBall Acquisition are down 3% to $10.55 in after-hours trading.
Photo: Billy Beane, RedBall Acquisition, courtesy of Moboshgu
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