HZAC Stock: Why It Increased Today

By Amit Chowdhry ● Oct 14, 2021
  • The stock price of Horizon Acquisition Corp (NYSE: HZAC) increased by over 14% during intraday trading today. This is why it happened.

The stock price of Horizon Acquisition Corp (NYSE: HZAC) increased by over 14% during intraday trading today. Investors are responding positively to Horizon Acquisition announcing today that Eldridge Industries, LLC, an affiliate of Horizon’s sponsor, Horizon Sponsor, LLC, has entered into an agreement with DraftKings to make a private placement PIPE investment in connection with the closing of the previously announced merger between Horizon and Vivid Seats.

This investment will be part of the previously announced PIPE financing for the transaction, with DraftKings assuming a portion of Eldridge’s commitment. And the closing of the investment is conditioned upon completion of the business combination between Horizon and Vivid Seats, which is subject to approval of Horizon’s shareholders.

As part of the investment, Eldridge agreed to provide DraftKings the option to sell its Vivid Seats shares to Eldridge on the business day following the first anniversary of Horizon and Vivid Seats’ business combination closing at price of $9.77 per share, conditioned upon DraftKings continuously holding the Vivid Seats shares until such date and certain other terms and conditions.

KEY QUOTES:

“Todd and the Horizon team continue to provide strategic value as our merger partner, just one of our transaction’s unique, differentiating factors. We are delighted to have the support of DraftKings, a premier, customer-centric destination for fans.”

— Stan Chia, Chief Executive Officer of Vivid Seats

“We are pleased to announce this investment from DraftKings, one of the country’s leading and most visible sports tech entertainment companies. Today’s announcement is a nod to Vivid Seats’ growing and powerful ticketing marketplace, and will aid the company with its overall mission to empower fans to ‘Experience It Live.”

“As an investor in both DraftKings and Vivid Seats, we are excited about the strategic benefits that both firms can derive from working with one another and are happy to stand behind DraftKings’ investment for a limited period to help enhance their relationship.”

— Todd Boehly, Chairman and Chief Executive Officer of Horizon Acquisition Corp.

“Like DraftKings, Vivid Seats is a technology-driven company aligned very closely with our customer-centric business model. We look forward to exploring future marketing and promotional collaborations with Vivid Seats that further enhance DraftKings’ ability to offer an unmatched consumer experience.”

— Jason Robins, Chief Executive Officer of DraftKings

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.