(Reuters) – Spanish soccer club FC Barcelona has reached an agreement to list its content creation unit Barca Media on Nasdaq by merging with a special purpose acquisition company (SPAC), valued at $1 billion.
The deal, announced on Friday, will provide new capital for Barca Media, which FC Barcelona expects to become “an important source of revenue in the coming years”.
FC Barcelona’s president, Joan Laporta, who was re-elected in 2021 to navigate the club out of an institutional and financial crisis, has been seeking to develop alternative avenues for generating additional revenue.
Laporta, who oversaw one of FC Barcelona’s most successful periods from 2003 to 2010, inherited a club deeply affected by financial distress exacerbated by the COVID-19 pandemic.
The departure of renowned soccer star Lionel Messi in 2021 also compounded the club’s troubles. However, since taking charge, Laporta has endeavored to improve the club’s financial situation and secure new sponsorships.
FC Barcelona stated that Barca Media is expected to begin trading on Nasdaq in the last quarter of this year, following the completion of the merger with Mountain & Co I Acquisition Corp.
Assuming no redemption of shares by the blank-check company’s shareholders and no additional capital raised, existing shareholders of Barca Media will retain an 80% stake in the unit.
Special purpose acquisition companies (SPACs), commonly known as blank-check companies, are listed entities that merge with private firms to facilitate their initial public offerings, providing a faster route to going public.
(Reporting by Niket Nishant and Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri)
Credit: The Star : Sport Feed
