In the recent trading, the Horizon Acquisition Corp II stock price soared by 12%to close at $11.33. The rise in the stock price happened amidst rumors on Wednesday that the Sportradar AG is in talks to go public through the SPAC deal with Horizon Acquisition Corp II.
Horizon Acquisition Corp (HZAC) and Horizon Acquisition Corp II (HZON)
Horizon Acquisition Corp II is a blank-check company based in Greenwich, Connecticut. The sole purpose of such companies is to grab some stock and make it public (private to public company). The founder of the Company is known as Todd Boehly who is also a co-founder of Eldridge Industries (holding company).
There are SPAC founded by Todd Boehly, the former one comes under the ticker HZAC and has yet to find the deal, while the latter HZON went public last October and the IPO raised $525 million.
Sportradar is exactly what the blank-check company is looking for
The homepage of the blank-check company states its mission purpose of focusing on SPAC deal merger in the financial industries sector with a company of differentiated financial services and financial services-adjacent platforms. It seems that according to this description of the company merger, the blank-check company found Sportradar to fit the requirement.
Speculation that deal is valued at $10 billion
Sportradar is a Swiss gambling company which provides data from sport events to sport betters. The rumors about its SPAC merger were initially reported by a Bloomberg report however, it did not mention any source for this news. Now the speculations in the market evaluate the deal at more than $10 billion. However nothing about the deal has been verified and the talks can potentially not come to an agreement.
Sportradar states that it is backed by Michael Jordan and Mark Cuban, as well as Canada Pension Plan Investment and Revolution Growth. It has dealt in the last year with Major League Baseball, National Football League, National Hockey League and the international Tennis Federation. Furthermore, over 1000 companies rely on the financial sports data of this Swiss Company.
SPAC merger or IPO deal between both companies can allow Horizon Acquisition Corp II to keep professional ties and relations with the big four US sports through the major sports betting operator.
Investors will now wait eagerly for the news of the deal to come to fruition however they need to be aware that the deal could be valued at any price that isn’t the estimated $10-$12 billion which may lead to over-valuing and under-valuing of the stock.