Media investor Mario Gabelli yesterday filed to raise $200 million through a so-called blank-check company and will use the proceeds to buy a media or telecom company.
The new entity, Gabelli Entertainment & Telecommunications Acquisition Corp., plans to sell 20 million units in an initial public offering at $10 each.
Prior to the offering, Mario Gabelli held an 85.2 percent stake in the company. Frederic Salerno, former vice chairman and CFO of telecom giant Verizon, will serve as Gabelli Entertainment’s CEO and help look for deals.
Like many blank-check companies, Gabelli Entertainment has up to 30 months to find and purchase a business or else the fund has to immediately liquidate, most likely at a price of less than $10 a share.
A slew of blank-check companies have come to the market over the last few years including ones run by dealmakers including Bruce Wasserstein, Joseph Perella, Thomas Hicks, Nelson Peltz and Ronald Perelman.
In its filing, Gabelli Entertainment said it has not held any talks or conducted any research on a prospective target company. The company also said it has not engaged an agent yet to look for possible deals. Gabelli Entertainment will pay $10,000 a month to lease office space from Gamco Investors, Gabelli’s fund management company.