Sloan, Sagansky's Latest 'Blank Check' Company Raises $325 Million

Getty Images
Harry Sloan, Jeff Sagansky

Institutional interest proved stronger than expected, easily surpassing the group's initial goal of $250 million.

Harry Sloan and Jeff Sagansky's Silver Eagle Acquisition Corporation, set up to make acquisitions worldwide, has raised $325 million -- well over the initial target of $250 million, it was announced Tuesday.

Silver Eagle is a "blank check" company, meaning investors trust Sloan, the former head of MGM, and Sagansky, who held top executive posts at CBS and Sony, to find media or entertainment business in which to invest, to acquire or to merge with other entities they control. According to a source, the amount raised is due to increased interest from institutional investors.

The larger-than-expected amount raised is a tribute to what Sagansky and Sloan have already done, raising more than $500 million over the past two years. 

According to a company source, their last venture, Global Eagle, raised $190 million about seven months ago and is now valued at $600 million. Investors with warrants (to acquire stock at a set price) have made a 30 percent return.

The latest deal, which was priced at $10 per unit,  is also one of the largest special purpose acquisition company offerings in the past seven years. The units were trading Tuesday at $10.05 each.

Silver Eagle units are now listed on the NASDAQ Capital Market under the trading symbol EAGLU. Each unit consists of a share and a warrant to purchase another half of a share at an exercise price of $5.75 ($11.50 for a full share).