Take me out to the ball game… and then put RedBall Acquisition (NYSE:RBAC) on your radar. The special purpose acquisition company has largely been trading without attention, but RBAC stock is shooting higher on Thursday afternoon. So what do you need to know now? And how are Red Sox SPAC merger rumors involved?
To start, investors should know that RedBall Acquisition is a blank-check company. This means it is looking to bring a private business to the public markets. Thanks to an October 2020 report in the Wall Street Journal, there is speculation that Red Sox parent Fenway Sports Group is that target.
With that in mind, here is what you should know about RBAC stock and a Red Sox SPAC merger:
- RedBall Acquisition initially came public in August 2020.
- At the time, the company raised $500 million by offering 50 million units at $10.
- Importantly, trio Gerald Cardinale, Billy Beane and Alec Scheiner are behind the sports SPAC.
- All three have significant sports partnerships and ties to major sports leagues like the NFL.
- From the beginning, RBAC stock said it wanted to target a sports industry company.
- It says it is open to sports media, data and analytics, and is also considering European soccer.
- In October, the Wall Street Journal first reported that Fenway Sports Group was in talks with RedBall Acquisition.
- Such a deal would bring the Red Sox and the Liverpool Football Club to the public markets.
- According to the Journal, the deal would be valued at $8 billion including debt.
- Fenway Sports Group also owns 80% of the New England Sports Network.
- One thing for investors to keep in mind is the value of the individual teams.
- The Boston Red Sox are the third most-valuable baseball team, clocking in at $3.3 billion.
- Liverpool has a valuation of $2.2 billion.
RBAC Stock and a Red Sox SPAC Merger
But what else should investors know about RBAC stock and a Red Sox SPAC merger?
Well, there is really no denying that this is a unique deal. Unlike many other potential blank-check mergers, RBAC stock is not focusing on a red-hot tech industry. Instead it could bring two well-known teams and other sports assets to the public markets. That sure provides a new opportunity for investors, although the value of that opportunity is one to research.
As Dan Primack wrote for Axios back in October, one of the biggest outcomes of such a SPAC merger would be the implications for the rest of the sports world. In fact, Primack said it would “open the stargate” between SPACs and other MLB teams. It would create more financial transparency and give investors an inside look to the world of baseball financing.
If you are a sports fan or a SPAC lover, keep RBAC stock on your radar. Without confirmation of a Red Sox SPAC merger, use this time to do your own research.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.