SPAC volatility forces SeatGeek and Billy Beane of 'Moneyball' fame to shelve merger plans as the boom in blank-check deals fades
Jane Tyska/MediaNews Group/The Mercury News via Getty Images
- A merger deal between SeatGeek and the SPAC run in part by famed baseball manager Billy Beane has been terminated.
- SeatGeek and RedBall Acquisition cited market volatility as a reason for ending the agreement.
- The SEC's recent scrutiny of SPACs has sent a chill through the market as well.
A merger deal between RedBall Acquisition, a special acquisition purpose company led in part by Oakland A's executive Billy Beane, and ticket platform SeatGeek has ended, the companies said Wednesday.
"[Given] current market conditions, it was mutually determined that the best option for all parties at this time is for SeatGeek to remain private," Andy Gordon, a partner at investment firm RedBird Capital, said on behalf of RedBall in a statement.
The SPAC said in October it was in talks with SeatGeek about a potential deal. RedBall shares were up 6% during Wednesday's session, trading near $10.
"Unfavorable" market conditions are "particularly impacting growth technology companies," the companies said Wednesday. SPACs, or special purpose acquisition companies, usually merge with high-growth tech companies aiming to avoid the traditional IPO process.
The RedBall termination comes at a time when the broader stock market has been rocked lower by recession fears and a fast pickup in bond yields.
Tech stocks as measured by the Nasdaq Composite have tumbled more than 20% this year, hitting bear-market territory, as increased borrowing costs hurt earnings potential.
Meanwhile, the boom in SPACs in 2020 and 2021 has slowed this year in the face of increased scrutiny by the Securities and Exchange Commission. There have been 67 SPAC initial public offerings in 2022, down from 613 in 2021 and 248 in 2020, according to SPAC Research.