- Shares of Shaquille O’Neal-backed Forest Road Acquisition Corp. (NYSE:FRX) popped more than 10% intraday Thursday on word that the SPAC’s shareholders had approved a three-way merger to take The Beachbody Company and Myx Fitness Holdings public.
- FRX rose to as high as $11.44 on the news, up 10.3% on the session. They later pulled back, but still closed at $11.22, ahead 8.2% for the day.
- “Today’s vote marks an important milestone in Beachbody’s mission to help more people achieve their goals and lead healthy and fulfilling lives," Forest Road CEO Keith Horn said in announcing the results. "We look forward to supporting Beachbody as it furthers this mission as a public company, introducing many more people to its proven, at-home fitness and nutrition solutions.”
- Beachbody is a streaming fitness-class firm, while Myx makes connected stationary bicycles. Their merger with Forest Road will give the combined entity about a $2.9B valuation.
- FRX is led by a mix of top names from Hollywood, the sports world and elsewhere.
Former Walt Disney Co. executives Kevin Mayer, Salil Mehta and Thomas Staggs are involved with the special purpose acquisition company, while the SPAC’s board includes Martin Luther King III, son of slain civil-rights leader Martin Luther King Jr.
Additionally, strategic advisers include NBA legend Shaquille O’Neal and producer Mark Burg, who's best known for the TV show “Two and a Half Men” and the “Saw” series of films.
- Plans call for the SPAC's Beachbody deal to close on Friday and for Beachbody to take over Forest Road’s New York Stock Exchange listing next Monday. The combined company will trade under the ticker symbol “BODY.”
However, Seeking Alpha contributor Riyado Sofian recently analyzed Beachbody and concluded that “I’m not a believer in this company. I’ll pass.”