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Jack Tretton Looking To Bring The SPAC To Gaming

While SPACs (special purpose acquisition companies) have been a trendy option in recent years, they’ve largely stayed out of the gaming space. However, that may no longer be the case since there’s at least one SPAC with an eye on the video game market: Power Up Acquisition Corp., which is led by the former CEO of Sony Computer Entertainment America, Jack Tretton.

Tretton says SPACs are just another answer to a problem he’s been trying to solve ever since he left Sony in 2014 to launch his own company that provides consulting services for other organizations, representing outfits looking to acquire and outfits looking to be bought.

“That led me to realize that not everybody wants to do acquisitions, but just about everybody in the indie space needs help raising money and it’s very difficult to do from outside the industry,” Tretton said.

When he first heard about SPACs, he liked how they gave companies easier access to money raised through public markets while letting the SPAC handle the regulatory and administrative overhead associated with IPOs. He also liked how it could let the target company remain largely independent and in control of its own destiny.

Power Up Acquisition Corp. has raised almost $288 million through its IPO and is looking to invest it in a company with a valuation between $1 billion and $2 billion. Despite the size, Tretton still refers to that scale as “the indie space.”

While the $1 billion to $2 billion range narrows down the field of candidates, it still has a variety of potential targets to choose from. Tretton says that the company identified 80 developers and publishers who meet its financial criteria for revenue and valuations.

“We’re looking at the entire video game space, so it’s not only publishers and developers,” Tretton says. “It’s also game adjacencies, media companies, ad-tech companies, really anything that supports the industry. If you read our S-1 [IPO regulatory filing], we can gravitate toward the entertainment industry or go any direction we want, but given our experience, our focus, and the size of the gaming industry, I certainly think we’re going to end up with a gaming partner.”

Power Up Acquisition Corp. has 15 months to complete a deal, or the funds raised through the IPO will be returned to investors. Extensions are possible, but Tretton said the goal is to have a merger completed during this 15-month window.

(All information was provided by GamesIndustry.biz)

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