The content creation unit of FC Barcelona ready to trade in New York
- Barcelona said the union would value the combined business at around $1 billion.
- The SPAC merger is expected to be finalized in the fourth quarter of 2023
- Barc Media is responsible for all audiovisual, digital and esports content.
FC Barcelona has revealed plans to spin off its US content creation business through a blank check merger and initial public offering.
The Spanish soccer giant said on Friday that special purpose acquisition company Mountain & Co had agreed to take its arm Barca Media public on the Nasdaq.
He said the union would value the combined business at around $1bn (£790m) and help it gain access to capital that can be used to finance original content.
Deal: The Spanish soccer giant revealed that company SPAC Mountain & Co had agreed to take its Barca Media division public (Pictured: Barcelona players Ez Abde and Lamine Yamal)
Following the deal, which is expected to close in the fourth quarter of 2023, Barc Media will be led by Toni Cruz, a longtime Spanish media industry executive.
The division is responsible for producing all audiovisual, digital and esports content, from interviews to highlights, and is distributed through the football club’s social media channels.
Barcelona is not only one of the most valuable sports teams in the world, but it has one of the largest followings on social media, with 122 million followers on Instagram.
It was also the first soccer club to surpass more than 15 million subscribers on YouTube.
Joan Laporta, president of FC Barcelona, said Barca Media’s content “has proven to be extremely valuable, resonating well and driving significant engagement with our growing global fan base while generating new revenue streams.”
He added: “This move is a strategic decision that will provide us with additional resources to continue to grow the platform at a time when demand for sports-themed digital content is expanding exponentially.”
Barcelona also announced on Friday that it would sell a minority stake in the Barca Vision technology platform to LIBERO Football Finance for 120 million euros.
This comes two days after the Catalan team agreed to sell a 49 per cent stake in Barca Studios to Mexican private equity firm Mountain Nazca for £155.3m, subject to LaLiga approval.
Since Laporta was re-elected as Barcelona president two years ago, he has sought to put the club’s finances on a stronger financial footing.
Years of extravagant transfer spending, salary bills and plummeting attendance numbers during the Covid-19 pandemic left the club in debt of more than $1.4bn when Laporta arrived.
During his tenure, Barcelona sold a 25 per cent stake in his media rights over 25 years to US investment firm Sixth Street and made a record £236m endorsement deal with music streaming service Spotify.
However, despite all these transactions, the club’s financial vice president, Eduard Romeo, confessed at a press conference in June that his debts remained the same as when Laporta took office in March 2021.
