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AKIC Stock Alert: 7 Things to Know About the DNEG SPAC Merger Bringing ‘The Matrix’ Public

DNEG, the visual-effects studio behind films like “Dune,” “Venom: Let There Be Carnage” and “The Matrix Resurrenctions” is going public. Indeed, the Oscar-winning visuals company is merging with special purpose acquisition company (SPAC), Sports Ventures Acquisition Corp. (NASDAQ:AKIC). Investors are keeping a close eye on AKIC stock today ahead of the deal worth an estimated $1.7 billion.

two businessmen shaking hands with peers at their side
Source: Shutterstock

So, what do you need to know about this high-profile SPAC merger?

Well, DNEG is something of a household name for those familiar with video effects — it’s one of the best in the business. From Disney (NYSE:DIS) to Marvel, to Christopher Nolan films, the prolific British effects studio has separated itself from the competition for the quality of its production.

The merger, expected to go through by mid-year, would make DNEG the only pure-play publicly traded animation company on the Nasdaq. At the conclusion of the deal, Sports Venture’s AKIC will become DNEG stock.

As a result, AKIC has seen a strong, albeit muted day thus far, trending up a bit more than 1%. Additionally, DNEG chairman and Chief Executive Namit Malhotra had some kind words for the deal.

“This transaction creates long-term stability for our teams while also allowing us to exploit the tailwinds in the media and entertainment industry and the explosion in demand for content, which are huge growth drivers for our company. … Leveraging our leading technology stack, DNEG is already making great strides into new growth areas such as gaming and content creation partnerships, and we are perfectly positioned to exploit massive new opportunities in the metaverse and the convergence of all forms of content creation.”

What else do you need to know about the blockbuster IPO?

7 Things to Know About DNEG’s SPAC Merger With AKIC Stock

  1. As part of the deal, DNEG is raising $168 million in private investment from Novator Capital.
  2. Formerly known as “Double Negative,” the effects studio was founded in 2014 after a merger with Prime Focus.
  3. DNEG projects earn roughly $400 million in revenue for its fiscal year, which concludes in March.
  4. After joining with Sports Ventures, DNEG will trade under the DNEG ticker rather than its current AKIC.
  5. DNEG has earned six Academy Awards for Best Visual Effects over its lifetime.
  6. As per the announcement, DNEG hopes going public will allow the company to expand into new markets, like gaming.
  7. This year alone, more than 10 projects will be released using DNEG’s technology and infrastructure. This includes season four of the hit show “Stranger Things,” as well as “The Flash,” and “Shazam! Fury of the Gods.”

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/akic-stock-alert-7-things-to-know-about-the-dneg-spac-merger-bringing-the-matrix-public/.

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