Two years ago, DraftKings went public by special purpose acquisition company (Diamond Eagle Acquisition) and almost single-handedly sparked a wave of sports-related SPACs. After DraftKings’ SPAC shares rose more than 600% from the deal announcement, 162 sports-related SPACs were formed, Sportico reports.
Today, the unbridled enthusiasm of earlier deals has given way to uncertainty, with dozens of SPACs canceling IPO plans and many others discovering large hurdles to their offers.
Year-to-date, 54 SPACs have pulled the plug on IPO plans, according to SEC filings. Among them are 11 sports-related SPACs, including a withdrawn $2 billion IPO for Spinning Eagle Acquisition from Jeff Sagansky and Harry Sloan, the duo who took DraftKings public in April 2020. Read more.
