Former executive at Sony Pictures Entertainment, Jeff Sagansky and former entertainment lawyer Harry Sloan are launching the third public acquisition vehicle Double Eagle Acquisition Corp. with a $500 million initial public offering of 50, 000, 000 units at $10.00 per unit, including 2 million units to be sold to the underwriters.
Each unit consists of one Class A ordinary share and one warrant to purchase one half of one Class A ordinary share at an exercise price of $5.75 per half share.
Back In 2011, Jeff Sagansky and his partner Harry Sloan launched Global Eagle, a special purpose acquisition company which raised $190 million in its initial public offering (IPO).
They perchested two companies, a satellite connectivity firm Row 44 and content company Advanced Inflight Alliance, and created one big inflight entertainment business in a deal valued at $430 million.
Two years later, In 2013, they collaborated again on Silver Eagle and raised another $325 million.
Global Eagle moved into in-flight entertainment holdings and Silver Eagle bought a 38 percent stake in Indian pay-TV service provider Videocon d2h for $273 million. Videocon d2h has 500 channels and about 13 million subscribers. They listed the company publicly in India.
Now two years past and Sagansky and Sloan are hoping to capitalize on the worldwide transformation that is going on in the digital space. The way it works is they raise the money, they find a target of acquisition and then, according to Sagansky, “Once we do, we go back to the investors and they have to stay in or redeem their shares.”
The units are listed on the NASDAQ Capital Market and trade under the ticker symbol “ EAGLU.” Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on the NASDAQ Capital Market under the symbols “EAGL” and “EAGLW, ” respectively.
Double Eagle was formed for the purpose of combining with one or more businesses through a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
Its efforts in identifying a prospective target business will be focused on, but not limited to, the media and entertainment industries.
Double Eagle’s sponsor is Double Eagle Acquisition LLC, of which Mr. Sagansky is the Managing Member. Joining him in the management of the company is Chief Financial Officer James Graf, who served in that capacity for Mr. Sagansky’s two prior public acquisition vehicles, and Eli Baker, who joins the team as Vice President, General Counsel and Secretary, and was a director of one of Mr. Sagansky’s prior public acquisition vehicles.
Sloan is a major founding investor. Deutsche Bank Securities and Bank of America Merrill Lynch acted as joint bookrunners for the offering, with Sterne Agee CRT and I-Bankers serving as co-managers.
Sloan served as chairman and CEO of MGM between 2005 and 2009. He was also the founder, chairman and CEO of SBS Broadcasting.
Sagansky served as president of CBS Entertainment between 1990 and 1994, and as CEO of Paxson Communications from 1998 to 2003.