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Wynn Resorts and Bill Foley-backed SPAC terminate $3.2 billion deal -Breaking

by Mike Robinson

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© Reuters.

(Reuters) – Wynn Resorts Ltd (NASDAQ:) Ltd, backed by billionaire investor Bill Foley, has canceled Friday’s $3.2 billion agreement to make the online casino operator’s subsidiary publicly.

This termination comes after similar failures in special purpose acquisition companies (SPAC) industry. Also, earlier this week, the planned SPAC merger by BBQ Holding (backed by NFL veterans Eli Manning & Peyton Manning) was canceled.

SPAC dealmaking is slower this year than it was last year, due to stricter accounting guidance and increased scrutiny from U.S Securities and Exchange Commission.

Other deals were also rejected, including the Topps Sports Card Company and Bill Ackman’s high-profile SPAC deal with Universal Music Group (AS)).

Wynn and Austerlitz Acquisition Corporation, a blank-check firm I have not given a reason why the plan was canceled.

Wynn Interactive chief executive officer Craig Billings said that Wynn Interactive is expecting its dependence on heavy investment to decrease significantly in the next quarter.

Austerlitz raised $690million when it went public. SPACs have typically two years to search for a company that they want to merge.

SPAC shares fell 1.2% and Wynn Resorts shares dropped 0.4% during early trading.

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