Posted on: October 4, 2022, 07:40h.
Final up to date on: October 4, 2022, 08:04h.
Las Vegas Golden Knights proprietor Invoice Foley is closing two particular function acquisition firms (SPACs), one in all which was concerned in a now-defunct gaming business reverse merger.
Within the newest signal of a major cooling down interval within the blank-check area, Foley is shuttering Austerlitz Acquisition Company I (NYSE:AUS) and Austerlitz Acquisition Company II, returning $2.1 billion to shareholders within the course of, in accordance with filings with the Securities and Alternate Fee (SEC).
Austerlitz Acquisition Corp. I, which raised $690 million in its preliminary public providing (IPO), popped up on gaming buyers’ radars in Could 2021 when it was revealed the SPAC would merge with Wynn Resorts’ (NASDAQ:WYNN) Wynn Interactive unit to deliver the iGaming and sports activities wagering enterprise public at a valuation of $3.2 billion.
Nevertheless, Wynn put the kibosh on that deal final November, saying it didn’t wish to interact within the excessive buyer acquisition prices permeating the sports activities wagering business. By early 2022, it was rumored the gaming firm was trying to promote Wynn Interactive for $500 million — a mere fraction of the proposed worth within the SPAC deal. The on line casino operator maintains management of the net betting enterprise as we speak.
Not All Flops for Foley
Foley has had his share of success with SPACs and different investments.
In 2020, his Foley Trasimene Acquisition Corp. II revealed plans to merge with Paysafe Group Holdings Ltd., a processor of on-line funds for on-line sportsbooks. Paysafe now trades on the New York Inventory Alternate beneath the ticker “PSFE.”
His Cannae Holdings (NYSE:CNNE) is an investor in Sightline Funds, a supplier of cashless gaming options. In August 2021, Sightline was valued at $1 billion in personal markets, making it the primary fintech unicorn based mostly in Nevada. Sightline’s on-line shoppers embody BetMGM, Caesars, DraftKings, FanDuel, and WynnBET, amongst others.
Along with his enterprise pursuits in Nevada and past, Foley is usually tied to quite a lot of sports activities rumors past his possession of the NHL’s Knights. Current hypothesis linked him to an acquisition of English Premier League soccer workforce AFC Bournemouth.
He’s additionally been tied to efforts to deliver a Main League Soccer (MLS) franchise to Las Vegas.
Foley not Alone in SPAC Failures
Foley is much from alone in closing SPACs. 12 months-to-date, 22 blank-check companies liquidated — greater than doubling the full seen from 2017 to 2021, in accordance with Bloomberg knowledge.
Often, blank-check companies are agnostic in regards to the business through which they seek for targets. However some come to market telling buyers the plan is to scour a number of industries for merger companions. Some SPACs overtly talked about gaming of their regulatory filings.
As such, the business has its share of realized and failed SPAC offers. Final month, European lottery big Allwyn Leisure and SPAC Cohn Robbins Holdings (NYSE: CRHC) known as off their deal. And Tekkorp Digital Acquisition’s (NASDAQ: TEKK) hopes for survival now depend on a companion touchdown an Illinois sports activities betting allow, which hasn’t occurred but.
Each SPACs might be a part of the liquidation record within the coming months.