Neil Jacobson secures IPO for $200m acquisitive music company, now trading on the NYSE

Neil Jacobson

Last month, Music Business Worldwide revealed that long-time Geffen Records President Neil Jacobson was plotting a major flotation of a new music company in the US.

According to an SPAC S-1 prospectus obtained by MBW for Jacobson’s new company, The Music Acquisition Corporation, the exec was planning to raise $200 million (potentially up to $230 million) via an imminent IPO on the New York Stock Exchange.

So far, everything is going to plan. Jacobson’s company confirmed yesterday (February 2) that it had priced its IPO of 20 million units at $10 each.

The Music Acquisition Corporation then floated on the NYSE this morning (February 3) under the ticker symbol TMAC.U.

TMAC.U is a Special Purpose Acquisition Company (SPAC) and is on the hunt for acquisitions in the worlds of both music rights and music tech.

Citigroup Global Markets Inc. and Cantor Fitzgerald & Co. are acting as joint bookrunners for the IPO.

The company has granted the underwriters a 45-day option to purchase up to an additional 3m units at the IPO price ($10) to cover over-allotments, if any (which would take its total raise to $230m).

According to a release announcing the pricing of the IPO, each TMAC.U unit consisted of one share of Class A common stock and one-half of one redeemable warrant. Each whole warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share.

After the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on the NYSE under the symbols TMAC and TMAC WS, respectively.

The offering is expected to close on February 5, 2021, subject to customary closing conditions.

Jacobson’s Music Acquisition Corporation is described in a release as “a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses”.

It adds that The Music Acquisition Corporation will target businesses “that are either directly or indirectly connected with the music sector, with particular emphasis on businesses where the Company’s significant strategic and operational expertise and long-standing position within the music industry will be a value-additive proposition to potential target businesses”.

In The Music Acquisition Corporation S-1 filing, which you can read in full through here, the company highlights four separate acquisition target areas, all of which meet at the intersection of music and technology.

Those four target areas are as follows:

  • Audio Content: “We plan to explore potential target companies serving content creators, IP owners and consumers by unlocking new opportunities for content discovery and monetization. Our depth and breadth of relationships across the entire audio industry, including recorded music labels and music publishers, streaming platforms, podcasting platforms, voice platforms, agencies and other emerging platforms, position us to uniquely source and evaluate opportunities for potential targets in this sector.”
  • Technology: “The dramatic advancements in the music industry are largely driven by pioneering technology companies… Select verticals of interest include royalty free sample libraries (for production music), music catalog analysis and organization tools, data science and trend research companies, blockchain and other AI-driven platforms.”
  • Social: “Platforms such as TikTok and Triller have provided new life to music, while their survival symbiotically depends on that of the music industry… We can offer a unique value-add to companies including but not limited to social media networking apps, social content platforms and online video sharing platforms.”
  • Consumer: “Brands that have been able to adapt and adopt music as a key driver, both in consumer experience and partnerships, have found significant success in recent years. Examples include Beats by Dre and Peloton. We believe we can provide immediate value to any consumer-facing company with proprietary access to top-level music and artists, resources and connections within the industry and an ability to navigate, contact and execute music licenses.”

In addition to Chairman and Chief Executive Officer Neil Jacobson, The Music Acquisition Corporation is led by Chief Operating Officer Todd Lowen, who has 20 years’ experience in finance and investment.

According to the company’s prospectus, Lowen spent “the majority of his career in the Equity Derivatives businesses of Lehman Brothers and Barclays Capital Inc. in New York”.

The company’s Board of Directors includes Michael Levitt, who has been the Chief Executive Officer of Kayne Anderson Capital Advisors, L.P. since July 2016.

It also includes Ben Silverman, “an entrepreneur and producer with nearly 30 years of experience in the media and entertainment industries.

Rounding off the Board is “experienced media and music industry entrepreneur” Tunde Balogun, co-founder and President of record label, management and publishing company Love Renaissance.

The Music Acquisition Corporation’s IPO today follows last week’s news that another newly formed “blank check” acquisition company, Liberty Media Acquisition Corporation, started trading on the Nasdaq Stock Exchange in the US on Wednesday (January 27) under the symbol LMACU, raising $575 million.Music Business Worldwide

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