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Blank check company Forest Road Acquisition raised $300 million in an IPO near the end of 2020, resulting in acquisition interest from 50 companies.
“When we raised our SPAC, we were determined to find a company with a strong, proven business model,” said Tom Staggs, Forest Road board member. “Beachbody is a perfect fit.” Beachbody and at-home connected cycling provider Myx Fitness will merge with Forest Road, with Myx becoming part of Beachbody.
The merger gives the combined company a $3 billion valuation. Forest Road is led by three former Disney executives, and lists Shaquille O’Neal and Martin Luther King III among strategic advisors.
Beachbody expects to generate $1.1 billion in revenue this year, up from last year’s $880 million. In addition to Beachbody on Demand and Myx, the company owns digital streaming platform Openfit. In December, Openfit acquired Ladder, a nutrition company founded by LeBron James and Arnold Schwarzenegger, who remain minority shareholders.
The SPAC craze has been unavoidable in the sports industry.
- Houston Rockets owner Tilman Fertitta’s Fertitta Entertainment will go public after announcing a $6.6 billion merger with FAST Acquisition.
- DraftKings went public last year after a $2.7 billion merger with SBTech and Diamond Eagle Acquisition.
- Private investment firm RedBird Capital and famed Oakland A’s executive Billy Beane created RedBall Acquisition to acquire a professional sports franchise.
- Alex Rodriguez and Colin Kaepernick announced new SPACs earlier this month.
- Atlanta Braves and Formula One owner Liberty Media’s new SPAC raised $500 million in its January IPO.
SPACs have already raised $38 billion in 2021 — nearly half of the record $83 billion raised in 2020.
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