Former MGM Chairman Sloan, Sagansky Get $190 Million in IPO
Former Metro-Goldwyn-Mayer Inc. Chairman Harry Sloan and Jeff Sagansky, non-executive chairman of RHI Entertainment Inc., said they raised $190 million to buy media or entertainment companies.
Global Eagle Acquisition Corp., a special-purpose acquisition company Sloan and Sagansky created, had sought $175 million in its May 13 public offering by selling 17.5 million units at $10 each. Investors bought 19 million, the Los Angeles-based company said in an e-mailed statement.
Sloan and Sagansky raised the funds as money is becoming more available in Hollywood. A group of investors that included Colony Capital LLC was able to obtain more than $400 million in debt to finance a $660 million purchase in December of Miramax from Walt Disney Co. (DIS) Global Eagle will pursue acquisitions in large, high-growth media markets, Sloan said in an interview.
“We’re looking for fairly fast growth, and it may just as likely come outside the U.S.,” said Sloan, who is chairman and chief executive officer. “We’re not ruling out the U.S.”
Sagansky is president of Global Eagle. The company has 21 months to find a suitable acquisition, according to a May 13 regulatory filing.
Special-purpose acquisition companies give founders a specific time period for finding an appropriate investment. Billionaire Nelson Peltz in 2009 returned $900 million to investors raised for Trian Acquisition I Corp. after he was unable to find a takeover target.
Sloan headed Los Angeles-based MGM after its $5 billion 2005 buyout. The distributor of “James Bond” and “Rocky” movies was taken over by creditors last year. It emerged from a prepackaged bankruptcy in December with a $325 million loan. Before joining MGM, Sloan was chairman and CEO of Luxembourg- based SBS Broadcasting SA, which was sold for $2.5 billion in 2005.
Sagansky is chairman and co-founder of film and television producer Winchester Capital Management LLC. He joined RHI in early 2009. RHI, a maker of made-for-TV movies, filed for Chapter 11 bankruptcy protection in December. Earlier in his career, Sagansky was president of entertainment at the CBS network and president of Tri-Star Pictures Inc.
Each Global Eagle unit entitles the holder to one share of common stock and one warrant, according to the prospectus. The units, which trade on the Nasdaq Stock Market under the symbol “EAGLU,” have risen 1 cent to $10.01 since the IPO.
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