Jack Tretton, the former CEO of PlayStation, has announced a new $225 million special acquisitions company (SPAC) focusing on the video gaming industry
The SPAC, called PowerUp Acquisitions, will raise $225 million at $10 a share, offering 22.5 million shares.
The SEC filing, available HERE, shows PowerUp will use the capital to identify and acquire a business or businesses within the interactive media, entertainment, sports, digital media and/or leisure industries, with a particular focus on video games and metaverse gaming.
SPACs, or blank check companies as they’re often referred, allow private companies to merge into a public entity. This streamlines time, costs and processes normally associated with going public via IPO.
In 2021, investors injected close to an estimated $100 billion in the video game industry with direct investments, mergers and acquisitions, initial public offerings and SPACS. The total investment in the industry was more than doubled that of 2020.
Now, with this SPAC announcement, 2022 is starting off red hot for investors in the video game industry. While it’s not yet known which company or companies PowerUp will target, some small-to-midsized gaming and game-tech companies, and their early investors, stand to be in an enviable position if acquired.
However, PowerUp is not likely to be the only gaming SPAC of the year, and in fact, there’s at least one other big gaming SPAC that went public late in 2021 that’s yet to acquire assets.
UTA Acquisition Corp, led by Reggie Fils-Aime (former Nintendo of America CEO), raised $230 million with its gaming SPAC, which closed on December 6th. But as of January 3rd, UTA has yet to announce acquisitions.
This means PowerUp has some serious competition from UTA for the best available developers, publishers, and game-tech companies that are still on the market.
Investors in these still private, potential target companies, should feel free to rejoice.
The competition between PowerUp and UTA, as well as upcoming SPACs, could lead to incredible increases in pre-acquisition valuations.
Read more about the PowerUp SPAC, HERE
Or learn more about potential SPAC targets, HERE