Liberty Media, which owns Formula 1 and about one-third of Live Nation, has revealed plans for a $500m Initial Public Offering (IPO) for its newly formed “special purpose acquisition company (SPAC).”
Liberty Media Acquisition Corporation (LMAC), a special purpose acquisition or shell company, has been formed to generate funds via a public offering with which to buy another company. It is now listed on the NASDAQ stock exchange.
The group said: “LMAC intends to search for a target in the media, digital media, music, entertainment, communications, telecommunications and technology industries.”
Under the terms of the IPO, Liberty would own 20 per cent of LMAC’s issued and outstanding common stock upon the consummation of the offering. Liberty’s ownership interest in LMAC is initially being attributed to Liberty’s Formula One Group tracking stock.
The cash will be raised through the sale of 50,000,000 shares at an initial price of $10 each.
Despite most of Liberty’s companies struggling during the COVID-19 pandemic, with Live Nation’s concerts and festivals grinding to a halt and F1 announcing a $115m operating loss for the third quarter earlier this month, the move shows the firm is planning to spend big.
Liberty Media president and chief executive Greg Maffei, who is also chairman of Live Nation and SiriusXM’s respective boards of directors, is set to lead LMAC’s management team.