John Hendricks, Founder and Chairman of CuriosityStream

Summary List Placement

Media companies are jumping into SPACs.

SPACs, or special-purpose acquisition companies, are shell companies created specifically to acquire firms and an increasingly popular way for companies including media and advertising ones to go public.

SPACs allow companies to avoid some of the scrutiny, time and cost of the traditional IPO process by merging with a shell company. For advertising and media companies, which are having a harder time getting funding, SPACs’ appeal is that they allow companies to raise money for growth and acquisitions.

CuriosityStream, a 5-year-old streaming service founded by former Discovery Communications founder John Hendricks, plans to go public this week through a reverse merger with Software Acquisition Group, a SPAC led by Jonathan Huberman, who formerly led video adtech firm Ooyala.

CuriosityStream focuses on factual content like documentaries and features, with more than 3,100 titles available, including 900 original titles. It reports 13 million paying subscribers buying monthly and yearly subscriptions that range from $3 a month to $70 a year, with 80% of new members choosing an annual plan.

The deal with Software Acquisition Group is valued at $331 million in enterprise value with $512 million in equity value. As part of its merger, CuriosityStream will receive about …read more

Source:: Businessinsider – Tech


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