Shaq, Lebron James, & former TikTok CEOs SPAC just announce their $3B merger with Beachbody
Some people involved with this (which is honestly a big part of why I'm so excited):
* Kevin Mayer, TikTok's former CEO,
* Lebron James
* Arnold Schwarzenegger
* Tom Staggs, former Disney CFO & COO
The announcement just came out. [Full version](https://on.wsj.com/2Nhy8de).
Here are the **highlights**:
"Fitness-and-nutrition business the Beachbody Company Group LLC plans to merge with a blank-check company affiliated with former TikTok Chief Executive Kevin Mayer in a deal that values the combined company at nearly $3 billion."
As part of the deal, Myx Fitness LLC, an at-home connected cycling provider, will become part of The Beachbody Company.
Beachbody is expected to generate more than $1.1 billion of revenue this year.
"Beachbody said it plans to use the capital to expand its sales and digital marketing efforts and to enter new geographies"
Other awesome things about FRX:
* Lebron James and Arnold Schwarzenegger are involved (to what extent, I'm not sure but Beachbody [owns the majority stake in their shared company Ladder](https://en.wikipedia.org/wiki/The_Beachbody_Company#Divisions))
* The company [also owns P90X](https://en.wikipedia.org/wiki/The_Beachbody_Company#History)
The company is well diversified between 3 separate entities. Each with complementary but different offerings. The fitness offering, I think, pairs really well with their roster on the team which (as covered above) is highly experienced in sports and media.
Peloton is due for a competitor. Its a great platform but its not the solution EVERYONE needs. MYX Fitness' products offer added choice to a marketplace that is foaming at the mouth for more options.
The company has been around for over 20 years which is just a nice reassurance
Because of how the deal is structured, it appears the company will now be, more than ever, able to expand via acquisitions (they actually mention this in the article) and a HEAVY digital marketing spend.
**Ticker:** FRX (for now)