Wynn Resorts and Bill Foley-backed SPAC terminate $3.2 billion deal

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FILE PHOTO: Company logos are displayed at the Wynne Macau resort on February 8, 2018 in Macau, China. Businesshala/Bobby Yip
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(Businesshala) – Wynn Resorts Ltd and billionaire investor Bill Foley-backed blank-check firm on Friday closed their $3.2 billion deal to take the casino operator’s online betting subsidiary public.

The termination follows a similar collapse in the Special Purpose Acquisition Company (SPAC) space. Earlier this week, NFL legend Eli and Peyton Manning-backed online grill retailer BBQ Holding also called off its planned SPAC merger.

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Bargaining in the SPAC market has slowed over the past year, with tighter accounting guidance and closer scrutiny from the US Securities and Exchange Commission.

Other proposed deals have also failed, including the high-profile deal between sports card firm Topps and SPAC magnate Bill Ackman and Universal Music Group.

Wynn and the blanc-check company Austerlitz Acquisition Corporation I gave no reason for canceling the planned deal.

Craig Billings, chief executive officer of Wynn Interactive, a subsidiary of Wynn Resorts, said the company expects the decline to require huge investments starting in a meaningful way in the first quarter of next year.

Austerlitz went public in February, raising $690 million. SPAC usually has two years to search a company for merger.

Shares of SPAC were down 1.2%, and shares of Wynn Resorts were down 0.4% in early trading.

Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguly

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