Hollywood Vets to Take Mobile Gaming Firm Skillz Public
The venture run by former MGM CEO Harry Sloan and CBS entertainment president Jeff Sagansky has found a merger partner.
Flying Eagle Acquisition Corp., the special purpose acquisition company controlled by former MGM CEO Harry Sloan and CBS entertainment president Jeff Sagansky, has found a merger partner.
The SPAC will merge with Skillz Inc., a mobile gaming platform, making it a public company on the New York Stock Exchange.
The deal values Skillz at $3.5 billion, with Flying Eagle contributing its $690 million, and other investors including Wellington Management Company, Fidelity Management & Research Company, LLC, Franklin Templeton, and Neuberger Berman committing an additional $159 million. Skillz expects to have about $250 million in cash on its balance sheet after the merger, which is expected to be completed by the end of fall 2020.
Skillz’s technology powers esports and gaming tournaments for thousands of game developers. The sector has become particularly hot since the Supreme Court paved the way for states to allow online sports betting last year.
“I’ve been active in the evolution of gaming for 20 years, from ZeniMax to DraftKings, and I believe Skillz has positioned itself as the platform for the future of gaming, where entertainment, gaming, and enablement converge,” said Sloan in a statement.
It’s an area the business executives are familiar with. Sloan and Sagansky’s last SPAC, Diamond Eagle Acquisition Corp., merged with DraftKings last year, taking the sports betting firm public. LionTree Advisors and Jefferies LLC served as the financial advisers to Skillz.