From electric carmakers to space tourism to online learning firms, SPACs have provided an easy route to the public markets for businesses with, generously, a long path to profitability. The SPAC boom is now also smoothing the way for a legacy media company – Britain’s biggest newspaper – to leave the public markets through a wily feat of financial engineering, Bloomberg reports.
Daily Mail and General Trust Plc said that the Rothermere family, which founded the right-of-center newspaper 125 years ago, intends to acquire the 64% of the company it doesn’t already own. The offer ostensibly values DMGT’s equity at some 2.9 billion pounds ($4 billion), or a 38% premium to its average share price over the past year — not bad going for a company whose core newspaper business is in long-term decline. Yet it may undervalue the Daily Mail parent. Read more.
