The Coming Return Of Lew Dickey?

Lew Dickey Modern Media Acquisition Corp. CumulusIs Lew Dickey preparing his return to media ownership?

As first reported by Tom Taylor Now this morning, Lew Dickey’s Modern Media Acquisition Corp. has partnered with Macquarie Capital to launch a new acquisition company. The SEC filing states that Modern Media has already raised $180 million through an IPO for the Special Purpose Acquisition Company and is seeking to acquire a company with an enterprise value of $500 million to $1.5 billion.

INSTANT INSIGHT: Dickey’s 18 month non-compete with Cumulus expired at the end of March, right after he announced his resignation from the company’s Board of Directors. With that company still in financial distress there is going to be plenty of speculation surrounding a planned takeover of Cumulus, but there will be plenty of other acquisition targets should Dickey want to start with something new.

Modern Media Acquisition Corp. (the “Company”) has announced the pricing of its initial public offering of 18 million units at an offering price of $10.00 per unit, each unit consisting of one share of the Company’s common stock, one right and one-half of one warrant. Each right will entitle the holder thereof to receive one-tenth of one share of the Company’s common stock (without payment of additional consideration) upon the consummation of the Company’s initial business combination. Each whole warrant will entitle the holder thereof to purchase one share of the Company’s common stock at $11.50 per share. Modern Media Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization, recapitalization or other similar business combination with a target company. The Company intends to seek a target company with an enterprise value of approximately $500 million to $1.5 billion. The proceeds of the offering will be used to fund such business combination.

The offering is expected to close on May 17, 2017 and the units are expected to begin trading on May 12, 2017 on the NASDAQ Capital Market (“NASDAQ”) under the symbol “MMDMU”. The common stock, rights and warrants comprising the units will begin separate trading on the 52nd day following the date of the prospectus, unless Macquarie Capital allows earlier separate trading. Once the common stock, rights and warrants begin separate trading, they will be listed on NASDAQ under the ticker symbols “MMDM,” “MMDMR” and “MMDMW,” respectively.

Macquarie Capital is acting as sole bookrunner of the offering and EarlyBirdCapital, Inc., Cowen and Company, LLC and I-Bankers Securities, Inc. are acting as co-managers of the offering. Modern Media Acquisition Corp. has granted the underwriters a 45-day option to purchase up to an additional 2.7 million units to cover over-allotments, if any, in the public offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission on May 11, 2017.

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