Harry Sloan and Jeff Sagansky plan IPO for new media investment firm
Former Metro-Goldwyn-Mayer chief Harry Sloan and onetime CBS and Sony Pictures senior executive Jeff Sagansky are looking to raise at least $175 million to acquire media and entertainment properties.
Global Eagle Acquisition Corp., a new Los Angeles-based company co-founded by the two media veterans, on Tuesday registered with the Securities and Exchange Commission to sell a minimum of 17.5 million shares at $10 each in an initial public offering.
Though Global Eagle has not identified any specific acquisition assets or engaged in any talks with potential targets, it will seek to use its founders’ industry experience and connections to buy a controlling interest in one or more companies in the media and entertainment arena, according to the SEC filing.
Given the amount of money it is initially raising and its stated desire to have a majority stake in any acquisitions, the company will not be able to pull off particularly huge deals. However, with many sectors of the economy still struggling and many film and television libraries losing value because of a slump in DVD sales, there may be less expensive and even distressed assets that Sloan and Sagansky can pursue.
Any property the new venture buys would become part of a publicly held company; Global Eagle’s shares are expected to be traded on the Over-the-Counter Bulletin Board market for companies too small to meet listing requirements of larger exchanges.
The registration statement for Global Eagle represents the first public move by Sloan since he left financially troubled MGM in 2009. MGM recently emerged from bankruptcy under new management. Sagansky, meanwhile, already runs Winchester Film Capital, a private movie and television finance company based in New York. The two previously served together on the board of Lions Gate Entertainment Corp.
Sloan is chairman and chief executive of Global Eagle, while Sagansky is president. James Graf, Sloan’s brother-in-law who previously worked in corporate finance, is serving as chief financial officer. After the IPO, the three executives will own a combined 18% of the company.
According to the SEC filing, Global Eagle will have up to two years after its public offering to close its first acquisition. If it doesn’t, the company will be required to repurchase its stock from its remaining capital.
The company has not set a date to start selling its stock.
A spokesman said Sloan could not comment. Sagansky did not respond to a request for comment.
