Former MGM, CBS Heads Raise $190 Million for Media Investments
Harry Sloan and Jeff Sagansky's Global Eagle Acquisition Corp. will seek to invest and operate media and entertainment businesses that they believe have high growth potential, both in the U.S. and overseas.
In one of the largest public offerings for a new entertainment company in at least three years, Harry Sloan and Jeff Sagansky's Global Eagle Acquisition Corp. has raised about $190 million.
Sloan, former head of MGM, and Sagansky, a former head of CBS Entertainment, plan to use the money to invest in and operate media and entertainment businesses that they believe have high growth potential, both in the U.S. and overseas.
Under the terms of the offering, they can use the money to buy or create companies and can be the only owner or an investor with others. That means they could be investors in a much larger entity if they want to use the money that way.
Global Eagle's offering was oversubscribed, according to an announcement. Sloan and Sagansky had originally sought $175 million but were ultimately able to sell 18,992,500 units, at $10 per unit, for about $190 million. Each unit consists of one share of common stock and one warrant to purchase a share of common stock for $11.50 per share.
"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," Sloan said in a statement. "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."
Citi managed the offering and Deutsche Bank Securities and Macquarie Capital were co-managers. McDermott Will & Emery LLP was legal counsel to Global Eagle, and Akin Gump Strauss Hauer & Feld LLP was legal counsel to the underwriters.