Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Barcelona strikes $1 billion merger deal to list soccer club's media business

Published 11/08/2023, 11:32
Updated 11/08/2023, 17:45
© Reuters. FILE PHOTO: A silhouette of a woman walks past behind a FC Barcelona's logo at Camp Nou stadium in Barcelona, Spain, March 24, 2016. REUTERS/Albert Gea/File Photo
NDX
-

MADRID (Reuters) -Spanish soccer club FC Barcelona said it will list a new $1 billion content creation business called Barca Media on Nasdaq, through a merger with a so-called blank check company.

Barcelona's president Joan Laporta, who was re-elected in 2021 to lead the club out of an institutional and financial crisis, has been looking to develop new avenues to generate additional revenue and has brought in new sponsors.

The club said the deal with special-purpose acquisition company (SPAC) Mountain & Co. I Acquisition Corp, which must still be approved by club members and the SPAC's shareholders, will bring new capital into a business it expects to be an important source of future revenue.

A SPAC is a listed entity that merges with a private firm to take it public. Such shell companies help companies avoid the longer route of an initial public offering (IPO).

Subject to approval by the U.S. stock market regulator, Barca Media would start trading on Nasdaq after the merger deal closes in the last quarter of this year, Barcelona said.

Existing shareholders of Barca Media, a new brand that will combine the digital business of existing brand Barca Vision with all audio-visual content, will retain an 80% stake in the media business, assuming none of the Mountain's shareholders redeem their shares and no further capital is raised.

The club also said investment funds LIBERO Football Finance and NIPA Capital bought a combined 29.5% stake in Bridgeburg, the holding firm that owns Barca Vision, for 120 million euros ($132 million).

LIBERO, which advises football clubs seeking to obtain financing, said in a separate statement it had acquired a 9.8% stake in Bridgeburg for 40 million euros.

© Reuters. FILE PHOTO: A silhouette of a woman walks past behind a FC Barcelona's logo at Camp Nou stadium in Barcelona, Spain, March 24, 2016. REUTERS/Albert Gea/File Photo

Spanish soccer clubs now have to meet a salary cap in order to register new signings as well as those players who sign contract renewals. Last year, Barcelona resorted to selling club assets in order to create the margin needed to satisfy LaLiga.

Barcelona will not play at its outdated Camp Nou stadium, its biggest source of income, over the next few seasons after agreeing a financing deal worth 1.45 billion euros to revamp it.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.