Now they just have to find a media company or two to buy. Former CBS Entertainment President Jeff Sagansky and former MGM CEO and SBS Broadcasting founder Harry Sloan raised $190 million on Wall Street for their blank check company, Golden Eagle Acquisition Corporation.
With the corporate coffers full from the IPO, Golden Eagle will now try to make good on the “Acquisition” portion of its name. The company plans to use its cash hoard and debt financing to “acquire media or entertainment businesses with high growth potential in the United States or internationally.”
The IPO sold 18,992,500 units (oversubscribed from the planned 17.5 million) at $10 per share. Those units are currently trading on Nasdaq as EAGLU. Each unit consists of one share of stock and one warrant to buy a share of stock at $11.50. The stock, EAGL, and warrants, EAGLW, will trade separately within the next two months.
“Jeff and I are encouraged by the strong demand for our stock, and are excited to embark on the global search for a dynamic business to acquire for Global Eagle. We believe that our substantial experience in acquiring and managing media companies, combined with Global Eagle’s flexible public company structure, will facilitate a large and attractive acquisition,” said Sloan.
The IPO was underwritten by Citi, Deutsche Bank, Macquarie Capital and Maxim Group.
Under the terms of the blank check IPO Sloan and Sagansky have 21 months to complete a business transaction or return the money to the investors.
Note: SBS Broadcasting is a European company with no relationship to Spanish Broadcasting System in the US.