THE ISSUE WITH SPACs
JAY-Z Shawn Corey Carter, more commonly known as Jay-Z, has established himself as one of America’s most influential recording artists. But the rapper, songwriter, record executive and record producer has also become a wildly successful investor. In fact, he parlayed his music-industry prowess with his knack for business to become hip-hop’s first billionaire. Since 2005, he’s made 10 personal investments and one partner investment, with his most recent in Therabody, a tech wellness company. He entered the SPAC sphere as chief visionary officer for The Parent Co., a cannabis producer and distributor that completed a merger in January with CMG Partners Inc.’s Caliva and Left Coast Ventures Inc. The Parent Co., formerly known as Subversive Capital Acquisition Corp., has $381 million in cash to deploy for deals and aims to dominate the California cannabis market, the world’s largest.
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investing bring business acumen and panache to SPACs
SHAQU I L L E O’ N E A L
SERENA W I L L I A MS
A L EX RO D R I GU EZ
Think of Shaquille O’Neal, or Shaq, as a master of many trades. The basketball legend has also made his mark as a rapper, DJ and TV sports analyst, not to mention his MBA and doctorate in education. Shaq has sustained his wealth through a long list of investments. While in the NBA, he brought in nearly $300 million, but post-NBA his net worth soon reached $400 million because of stakes in businesses such as Five Guys, Papa John’s Pizza, Krispy Kreme, gyms and carwashes. He even owns a minority stake in the Sacramento Kings. So it’s no surprise that Shaq is also taking on SPACs alongside one of Martin Luther King Jr.’s sons and three former Disney executives. Their Forest Road Acquisition Corp. (FRX) has announced a merger with Beachbody and MYX Fitness. The company’s first SPAC raised $300 million and included onethird of a warrant with units. Now, Forest Road Acquisition II (FRXBU) seeks to raise $300 million by selling 30 million units. Shaq will serve as the SPAC’s special advisor.
With her 23 Grand Slam singles titles, Serena Williams has set a powerful example for women in sports, and she’s also demonstrating how powerful women can be in the business world. Over the span of five years, Williams has invested in 34 startups and, in April 2019, she announced the creation of Serena Ventures, a firm that invests in companies that embrace diverse leadership, individual empowerment, creativity and opportunity. She was the first athlete to reach the Forbes annual list of the world’s richest self-made women, with an estimated fortune of $225 million. Williams also serves on the board of directors for the SPAC Jaws Spitfire Acquisition (SPFR). The SPAC raised $300 million in an IPO to acquire consumer technology and related technology businesses in Europe and North America, and it recently merged with Velo3D to create a combined company with an enterprise value of $1.6 billion. It is expected to occur in the second half of 2021.
Alexander Enmanuel Rodriguez, nicknamed A-Rod, played shortstop and third base for the New York Yankees and is now an established businessman and philanthropist. He founded A-Rod Corp. in 2004 as an investment firm that backs businesses with internal and external capital and works with championship teams. The firm has invested in more than 30 companies and partnerships valued at more than $1 billion. A-Rod Corp.’s portfolio includes real estate in more than 40 states, gyms, fintech company Acorns, Vita Coco and telemedicine company Hims & Hers. A-Rod and Jennifer Lopez founded JLo Beauty, a skincare company. He’s CEO of a SPAC called Slam Corp. (SLAMU) that invests in startups and other companies. The SPAC plans to raise more than $500 million and sell 50 million units, comprising shares and warrants, priced at $10 each. It seeks acquisitions in sports, media, entertainment, health and wellness, and consumer technology.
PHOTOGRAPHS: (JAY-Z, WILLIAMS, RODRIGUEZ) SHUTTERSTOCK.COM; (O’NEAL) KYLE TERADA-USA TODAY SPORTS
Star Power
Celebrities from the worlds of sports, entertainment and
Luckbox | May 2021
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