A new $200m SPAC from former Barstool Sports and FanDuel executives has started trading on the Nasdaq. [Image: Shutterstock.com]
Former Barstool Sports and FanDuel executives have launched a $200m special purpose acquisition company (SPAC) on the Nasdaq. Bullpen Parlay Acquisition Company started trading Friday, raising a total of $200m by selling 20 million shares at $10 each in its IPO.
Former FanDuel board member Paul Martino and former Barstool Sports and FanDuel executive David VanEgmond launched the San Francisco-based SPAC. Martino, a managing partner of the Bullpen Capital venture capital firm, is Bullpen Parlay’s executive chairman, while the VanEgmond, a serial investor and partner at Bettor Change, is the CEO. The executive vice president and president roles will be held by two Bullpen Capital partners – Duncan Davidson and Eric Wiessen.
aims to make an initial acquisition within 18 months
Bullpen Parlay aims to make an initial acquisition within 18 months. If this does not happen, an agreement will kick in that will terminate the SPAC.
Plenty of gaming experience
On the subject of the types of acquisition opportunities that the SPAC will be looking at, the prospectus said: “We believe the online real money gaming, technology, sports, digital media, hospitality and leisure industries possess attractive potential business combination targets that have ample opportunity for growth and the potential to provide long-term shareholder value.”
Numerous gaming industry veterans have already gotten on board with Bullpen Parlay, each of whom will be directors of the company. They include former Caesars Entertainment chief information officer and executive vice president Les Ottolenghi, former Pala Interactive chief social gaming officer Brett Calapp, and iGaming Capital’s Melissa Blau.
Both Martino and VanEgmond have been involved in gambling-related mergers and acquisitions. They were both with FanDuel when Flutter Entertainment acquired the company. VanEgmond was also involved with Barstool Sports when Penn National Gaming bought a 36% stake in it for $163m.
The recent popularity of SPACs
SPACs have become a very popular way in recent years for US companies to go public, as it is an easier route than having an IPO.
Some of the notable gambling operators that have gone public through a SPAC include Genius Sports, DraftKings, Super Group, and Rush Street Interactive. However, there have been some gambling companies that have walked away from SPAC mergers in recent months, such as Wynn Interactive and Sportradar. There have also been ongoing issues with Golden Nugget parent company Fertitta Entertainment’s planned SPAC merger.