New $240M Gaming SPAC Launched by Jason Ader
Jason Ader has launched a $240 million SPAC on the NASDAQ that is set to target the gaming industry, as well as leisure, e-commerce and consumer companies.
Ader, who is a well-known investor and asset manager in the gaming sector, has called the SPAC 26 Capital Acquisition Corp, and it is trading as ADERU. It was initially priced at $10 when it launched on 15 January, and it soon rose 5.5% to $10.55.
SPAC is an acronym for Special Purpose Acquisition Company. Often referred to as blank-check companies, they are publicly traded entities that have products or services of their own but use funds to purchase privately-held companies in friendly mergers in order to take the companies public.
This is far from Ader’s first venture in the gaming industry. The founder and CEO of SpringOwl Asset Management has previously served as an independent director on the board of Las Vegas Sands (NYSE: LVS). He has also worked with industry giants such as IGT (NYSE: IGT), Bwin, Stars Group, and Playtech (LON: PTEC).
Ader has built a reputation as a person able to get deals done, and he reportedly helped arrange the acquisition of The Stars Group by Flutter Entertainment, which formed one of the world’s biggest online gaming companies. Furthermore, last year he publicly encouraged the idea that DraftKings (NASDAQ: DKNG) acquire Playtech, a company in which Ader’s SpringOwl has a stake.
Recent times have seen SPACs become a popular way for privately held companies to go public inexpensively and more efficiently than through a traditional initial public offering. A number of recently completed SPACs include DraftKings, Genius Sports, Golden Nugget Online (NASDAQ: GNOG) and Rush Street Interactive (NYSE: RSI). Furthermore, Ader’s new 26 Capital Acquisition Corp is just one in a number of new SPACs formed with hundreds of millions of dollars behind them searching for attractive gaming targets.