United Talent Agency is sponsoring a new Special Purpose Acquisition Company (SPAC) that will focus on acquiring and funding gaming and other types of digital media companies. On December 2nd, the SPAC, which is known as UTA Acquisition Corp., launched an offering of 20 million shares priced at $10 apiece. Through this offering, which officially closed on December 6th, UTAA expected to raise at least $200 million.
“We believe that there are a wide range of opportunities in gaming and related areas of digital media, the creator economy, entertainment, and technology,” UTAA said in a document filed with the SEC. “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.”
UTAA said that it plans on acquiring a company that has compelling intellectual property. Additionally, the organization must show the potential to scale and have a proven operating team.
UTA was originally founded in 1991. The company is currently headquartered in Beverly Hills, California. Some of the organization’s most famous clients include Nickmercs and Pokimane.
The Profit‘s Take:
In the past, I have mentioned that the talent agency market is a little bit crowded. So now, these companies are getting into the business of SPACs and acquiring gaming organizations. It’s going to be interesting to see who UTA goes out and buys. Their choice of Reginald Fils-Aimé would lead you to believe they might purchase a game developer. It felt like SPACs had their moment in the gaming industry. Then went away for a bit, but now, we are seeing a resurgence of them in this space.
(All information was provided by Variety, Wikipedia, and Yahoo! News)
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