Capitalizing on its strength in video gaming, UTA is in the process of raising $200 million through a SPAC designed to pursue acquisitions of gaming-related companies.
On Wednesday, UTA confirmed that the UTA Acquisition Corp. has launched an offering of 20 million shares priced at $10. Shares will trade on NASDAQ as of Thursday under the ticker symbol UTAAU and the offering is expected to be completed by Dec. 6.
UTA said the focus of the effort would be on gaming assets to leverage that strength of its in-house gaming team led by Ophir Lupu, UTA partner and head of video games. Lupo will serve as president of the SPAC and could have a larger role in the acquired companies going forward.
UTA has recruited other video gaming veterans to join the SPAC to provide a ready-made management team for its acquisition targets. Former Activision executive Kathy Vrabeck, Reddit co-founder Alexis Ohanian and former CBS executive Nancy Tellem are among the industry notables recruited to serve on the SPAC’s board.
Launching a SPAC focused on gaming assets is a big swing by UTA to diversify well beyond traditional revenue sources for talent agencies.
“We believe that there are a wide range of opportunities in gaming and related areas of digital media, the creator economy, entertainment and technology,” UTA said in its registration statement filing last month. “The strategic landscape in our areas of focus is evolving rapidly, as the traditional value chain across creators, developers, publishers, distributors and other key constituents has experienced significant disruption. We believe a number of underlying dynamics behind this disruption create a need for investment capital to fund growth and meet increased demand and that our management team is well-positioned to evaluate potential targets.”
More to come
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