Diamond Eagle Acquisition Corp., a Century City-based blank check company formed by two Hollywood veteran executives, plans to raise $350 million by offering 35 million units at a price of $10.
The shares are expected to trade beginning May 9 under the proposed symbol of DEACU, according to a filing made by the company with the U.S. Securities and Exchange Commission.
A blank check company – also known as special-purpose acquisition company, or SPAC –is a corporate shell through which investor money is raised via a public offering. Shares in the companies tend to trade around their IPO prices, at least until there’s some movement to purchase a company and take it public.
The company’s sponsors are Century City-based Eagle Equity Partners, which is controlled by veteran Hollywood executive Jeff Sagansky, investor and fund manager Eli Baker, and Harry E. Sloan, who serves as chairman and chief executive officer at Global Eagle Acquisition Corp.
Sloan, who previously served as chairman and CEO of Metro-Goldwyn-Mayer from 2005 to 2009, is working with Sagansky on this latest deal. The two executives have previously taken four other blank checks at Eagle Equity since 2011:
Platinum Eagle Acquisition Corp., which raised $325 million in January 2018; Double Eagle Acquisition Corp., which raised $500 million in 2015; Silver Eagle Acquisition Corp., which raised $325 million in 2013; and Global Eagle Acquisition Corp., which raised $190 million in 2011.
SPACs generally have anywhere from 18 months to two years to make an acquisition. If they don’t meet the deadline or fail to gain shareholder support on a purchase, the SPAC must return to investors the money raised. While SPACs are publicly traded, their shares are often held closely by the entity or entities behind them until an acquisition is made.
Finance reporter Pat Maio can be reached at email@example.com or (323) 556-8329.
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