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FEAC.U - Flying Eagle Acquisition News Story

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Mobile gaming firm Skillz to go public through merger with blank-check company

Wed 2nd September, 2020 12:02pm
Sept 2 (Reuters) - Mobile gaming firm Skillz Inc will float
its shares on the New York Stock Exchange through a merger with
Flying Eagle Acquisition Corp  FEAC.N , a blank-check company
founded by Hollywood executives Harry Sloan and Jeff Sagansky.
    The transaction will value Skillz at around $4.3 billion,
including about $850 million of cash from investors, according
to a statement from the companies. 
    Wellington Management, Fidelity Investments, Franklin
Templeton Investments and Neuberger Berman have agreed to invest
more than $159 million in the deal.
    Skillz, which is known for games such as Solitaire Cube,
Blackout Blitz and 21 Blitz, was founded in 2012 by Andrew
Paradise and Casey Chafkin.
    A blank-check company, also known as a special purpose
acquisition company (SPAC), uses IPO proceeds to buy another
firm, typically within two years.
    The deal marks the second SPAC deal for Sloan and Sagansky
this year. Diamond Eagle Acquisition Corp merged with DraftKings
Inc  DKNG.O  in a $3.3-billion deal earlier this year, taking
the online sports betting company public.*:nL5N2CB7TU
    A number of private companies have already gone public this
year by merging with blank-check companies. 
    Healthcare services provider MultiPlan reached a $11 billion
deal to go public by merging with another entity of Churchill
Capital, while electric-car maker Fisker agreed to go public
through a $2.9 billion deal with a blank-check company backed by
buyout firm Apollo Global Management Inc  APO.N .
    A number of high-profile investors such as Bill Ackman and
Michael Klein have raised billions through their SPACs this year
to strike deals with large unicorn startups and private firms. 
    Ackman-backed Pershing Square Tontine Holdings Ltd
 PSTH_u.N  raised $4 billion in July, making it the largest ever
blank-check IPO.

 (Reporting by Niket Nishant in Bengaluru; Editing by Krishna
Chandra Eluri)
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