SPAC: Game Studio Jam City Calls Off $1.2B Merger Deal
Jam City, a mobile games studio with a bevy of hits, has withdrawn its plans to go public by merging with a special-purpose acquisition company (SPAC). It’s called off its earlier-agreed with DPCM Capital (NYSE: XPOA), a SPAC formed by ex-Uber executive Emil Michael.
- The reasons for calling off the merger are uncertain and unspecific. Vaguely, both firms said in a joint statement that it is “the best path forward…in light of current market conditions.” Now, DPCM Capital will have to find a new merger target.
- Originally, DPCM and Jam City sought to combine in a deal valuing the latter at $1.2bn. As part of their combination, Jam City was supposed to use money from DPCM to finance a $175mn purchase of Canada-based mobile game publisher Ludia. Now, it’s unclear if that acquisition will go through.
- It may be that Jam City has sought to remain privately-held, or it’s found an alternative path onto the public markets. The company could seek a traditional IPO in that regard.
- Jam City is an LA-based mobile games maker with a bevy of hit titles such as Cookie Jam, Panda Pop, and Jurassic World: The Game. Historically, Jam City has expanded by acquiring rival game studios.
- Jam City is led by CEO Chris DeWolfe. A co-founder of the gaming studio, DeWolfe earlier co-founded Myspace, the top social network of the pre-Facebook and Instagram era.
- Calling off a $1.2bn merger deal is not something usually done on a whim. There could be major issues on ground that we don’t yet know about regarding the deal…