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Everyone's talking about SPACs these days. Little covered fact: now-bankrupt Global Eagle Entertainment $ENT originated from a 2013 SPAC. The sponsors were two former media moguls, Harry Sloan and Jeff Sagansky. They LOOOOOOOVE SPACS and apparently LOOOOOOOVE eagles.
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The two gentlemen have sponsored six SPACs in total:
Global Eagle Acquisition Corp., now the bankrupted Global Eagle Entertainment.
Diamond Eagle Acquisition Corp., which merged in April with sports betting site, DraftKings, up 849282% this year. $DKNG
Global Eagle Acquisition Corp., now the bankrupted Global Eagle Entertainment.
Diamond Eagle Acquisition Corp., which merged in April with sports betting site, DraftKings, up 849282% this year. $DKNG
Silver Eagle Acquisition Corp. which merged with Videocon d2h Limited in 2015.
Double Eagle Acquisition Corp. which merged with Williams Scotsman in 2017.
https://www.prnewswire.com/news-releases/silver-eagle-acquisition-corp-announces-closing-of-business-combination-with-videocon-d2h-limited-300058730.html https://www.prnewswire.com/news-releases/double-eagle-acquisition-corp-to-combine-with-williams-scotsman-international-inc-300507239.html
Double Eagle Acquisition Corp. which merged with Williams Scotsman in 2017.
https://www.prnewswire.com/news-releases/silver-eagle-acquisition-corp-announces-closing-of-business-combination-with-videocon-d2h-limited-300058730.html https://www.prnewswire.com/news-releases/double-eagle-acquisition-corp-to-combine-with-williams-scotsman-international-inc-300507239.html
Platinum Eagle Acquisition Corp., which merged with two entities in 2019 to create Target Hospitality Corp. ($TH), a TX-based specialty rental and hospitality services company with significant exposure to oil and gas. https://www.businesswire.com/news/home/20190315005526/en/Platinum-Eagle-Acquisition-Corp.-Completes-Acquisition-Target
This stock hit a high of $10.70/share in May 2019 but now trades at $1.49/share because, well, it has “significant exposure to oil and gas.”
Flying Eagle Acquisition Corp. ($FEAC). This is the latest offering from the two sponsors. It IPO’d earlier this year and is on the hunt for an acquisition target. The stock opened at $9.90/share and, for absolutely no reason whatsoever, now trades at around $11.75/share.
To summarize, 2 of those investments are total black boxes, 1 has been an absolute RedBull-thrusted rocket ship because, like “everyone’s a day trader now.” One is struggling and 1 is in bankruptcy (after showing growth prior to the pandemic). https://www.wsj.com/articles/everyones-a-day-trader-now-11595649609
Which means that, to date, only 20% of the sponsors’ acquisitions have resulted in bankruptcy thus far. They should get a mulligan for that, though, right? Right?!
For more commentary/analysis about finance, restructuring, distressed investing, bankruptcy, disruption and more, check us out: https://petition.substack.com/
