Forest Road SPAC With Kevin Mayer, Tom Staggs Purchases Beachbody Company from Digital Fitness Group – Deadline

Forest Road Acquisition Corp., a Special Purpose Acquisition Vehicle (or SPAC) backed by the eponymous entertainment finance company with an advisor roster in Hollywood, has found its target, announcing plans to purchase the fitness specialist. Beachbody Company digital and publish it.

The transaction involves a three-way merger between Forest Road SPAC, Myx Fitness Holdings, a connected home fitness platform, and Beachbody, based in Santa Monica. The transaction values ​​the combined business at $ 2.9 billion and is expected to add more than $ 420 million in cash to the balance sheet.

This is one of the first high profile acquisitions supported by PSPC in the field of entertainment by a new generation of financial vehicles also referred to as “blank check” companies. The backers, in this case Forest Road, assemble seasoned executives, create a PSPC, publish it, and begin looking for an operating company to acquire. Merging with a SPAC is a faster and easier way for a private company to go public.

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“When we increased our PSPC, we were determined to find a company with a strong and proven business model and significant growth potential where we could add value from our experience in creating and monetizing premium content. Beachbody fits those goals perfectly, ”said Tom Staggs, former COO and CFO of Disney and Forest Road, member of the board of directors and chair of the strategic advisory committee.

Beachbody will continue to be led by Carl Daikeler, Beachbody Co-Founder, Chairman and CEO Jon Congdon, Beachbody Co-Founder and Openfit CEO. Forest Road strategic advisor Kevin Mayer, former CEO of TikTok and senior executive at Disney, will join the merged company’s board of directors. Beachbody management and shareholders are deferring 100% of their ownership interest and will own approximately 84% of the pro forma business at closing.

Upon closing, The Beachbody Company will become the parent company of three companies focused on technology and premium content: Beachbody On Demand (BOD), Openfit and Myx. The transaction is expected to close in the second quarter of 2021 and the combined company will be listed on the NYSE under a new ticker symbol, BODY.

“Beachbody’s rapid growth in subscriber numbers is grounded in the concept of community and responsibility with a mission-driven focus that capitalizes on the tremendous growth of the health and wellness space. The company’s engagement and retention metrics validate the quality and depth of its content library and direct-to-consumer (DTC) technology capabilities. I see a lot of parallels at Beachbody to the work we’ve done at Disney, where we’ve aggressively accelerated our digital transformation and leveraged our content to create Disney +, ESPN +, and Hulu, ”said Mayer.

“I am delighted to join the Board of Directors to help further fuel growth and value creation for the company and its shareholders.

Forest Road announced the SPAC in October and went public in November. SPACS have up to two years to identify buyout targets.

The Forest Road team includes three former senior Disney executives – Staggs, Mayer and Salil Mehta, its CFO. Other directors, officers and strategic advisors include Shaquille O’Neal, Peter Schlessel, Keith Horn, Sheila Stamps, Teresa Miles Walsh and Martin Luther King III.

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