Why Beachbody Has That SPAC Stock Flexing Their Muscles Today


What happened

Special Purpose Acquisition Companies (SPACs) have been in the news lately for mergers in the electric vehicle industry. But a deal was announced today with what may be a more familiar company. Actions in Forest road acquisition (NYSE: FRX) were up 7.8% at close on Wednesday after PSPC announced plans for a three-way merger that will bring The Beachbody Company to the stock market.

So what

PSPC announced plans to complete the merger with Beachbody and MYX Fitness valued at nearly $ 3 billion after Beachbody and MYX Fitness boards of directors unanimously approved the transaction.

Image source: Getty Images.

Now what

The combination aims to capitalize on the popularity of home fitness apps. “With brands such as P90X, INSANITY and 21 Day Fix, Beachbody has consistently expanded its market share over the past two decades through its proven model of integrating the most comprehensive library of top fitness content. range with easy-to-follow nutritional tips and supplements, ”Forest Road said in a statement.

The new combined company will have 2.6 million paid digital fitness subscribers with 96% month-over-month retention. By combining digital subscriptions, connected fitness and growing consumer demand for health and wellness, Forest Road expects to tap into a growing segment of the market.

he believes an evaluation twice the estimated turnover in 2022 is an attractive entry point for investors. Today’s positive (but moderate) stock performance gives investors the opportunity to enter close to this valuation.

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