Skillz has started the procedure for entering the stock market

The Skillz mobile esports platform will appear on the New York Stock Exchange this fall. The company’s entry into the market will be helped by the Spacefaring Eagle Acquisition, which has previously estimated Skillz at $3.5 billion.

According to a statement on Skillz’s official website, the esports platform has decided to enter the stock exchange bypassing the traditional IPO procedure. She chose to merge with a special Purpose acquisition company (SPAC).

Flying Eagle Acquisition will become a partner in the deal with Skillz. Its owner, Harry Sloan, has already used the SPAC approach with DraftKings, an American fantasy competition operator.

As a result of the agreement between Flying Eagle and Skillz, the latter’s capital estimate ($3.5 billion) is 6.3 times higher than the estimated revenue of the platform in 2022 ($555 million). At the same time, the company itself has not made a profit for three years.

It is expected that the proceeds from the transaction will amount to $849 million. Of these, $690 million will be in the trust management of Flying Eagle, and $159 million will be invested by funds through private investments in the company’s exchange-traded shares (PIPE). It is already known that the investors will be Wellington Management Company, Fidelity Management & Research Company, Franklin Templeton and Neuberger Berman.

When Skillz goes public, it will have about $250 million on its consolidated balance sheet. The company plans to spend this money on marketing and its own development. Co-founders Andrew Paradise and Casey Chafkin will continue to lead Skillz.

Skillz is a mobile esports platform that conducts 3.5 million tournaments daily. According to the company’s forecast, 2 billion competitions will be held on its basis in 2020, for which users will pay $ 1.6 billion to enter.

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