Shares of Forest Road Acquisition Corp. (FRX), a special purpose acquisition company (SPAC) launched last year focusing on mergers and acquisitions around technology companies, surged 11.43% in trading after the ring of the bell on Thursday.
In the regular session on the day, the shell company came adding 9.87% to its value settling at $12.25. The stock saw 7.58M shares changing hands trading between the range of $11.32 and $12.67.
So, what caused the stock to surge?
Founded in 2020, the New York-based company intends to merge, acquire assets, purchase stock, reorganize, or co-operate with one or more tech, media, or telecom firms.
News of the creation of a new SPAC by a couple of its management team, Tom Staggs, director and Chairperson of the Strategic Advisory Committee, and Kevin Mayer, strategic advisor, drove the stock price of the company higher. Both executives previously remained part of Walt Disney’s management team. The executives intending raising $300 million in an initial public offering for a new SPAC as reported Reuters, citing a source.
Forest Road Acquisition last week agreed a three-way merger deal with fitness companies Beachbody LLC and Myx Fitness LLC valued at approximately $2.9 billion. The Beachbody Company will be the parent company of three premium content and technology-driven firms following the completion of the corporate mix transaction including Beachbody On Demand (BOD), Openfit, and Myx. The merger is scheduled to close in the second quarter of 2021 and the merged entity will be listed on the NYSE under a new ticker symbol, “BODY”.