25-07-2025
A-Rod SPAC Strikes Out, Canceling Long-Pending Merger With Lynk
Slam Corp., the SPAC formed by Alex Rodriguez that raised more than $500 million at its IPO during the height of the sports SPAC craze, told investors Thursday evening that it has called off its long-delayed merger with satellite phone service provider Lynk Global.
'Termination was on mutually acceptable terms and was completed as part of the full dismissal and settlement of related litigation in the Delaware Court of Chancery, which was commenced on June 19, 2025,' the company said in a regulatory filing. 'The settlement agreement provides that Lynk will make a deferred payment to Slam within the next two years that is significantly less than Slam's current liabilities.'
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Slam has about $612 million in liabilities on its balance sheet, almost all of which probably accounts for warrants issued as part of its IPO and continued efforts to retain investors. The company has $1.15 million in other, more common, liabilities, including accrued expenses, long-term debt and accounts payable, according to data compiled by S&P Global Market Intelligence.
The baseball great and new owner of the Minnesota Timberwolves formed Slam in 2021 to pursue the acquisition of a sports, media, entertainment or health and wellness-related business. At the time of its IPO, Slam was part of a wave of blank-check businesses associated with sports figures and seeking sports properties, sparked by the success of DraftKings' merger with a SPAC. The market soon fell headlong in a prolonged slump after most of the business combinations secured by SPACs turned out to be terrible deals for shareholders. A-Rod's pivot to merge with Lynk, which is still in development stage, was a relative success when announced in late 2023.
However, the two parties ran into trouble; Slam accused Lynk of slow-walking the merger in an attempt to force the deal to fail. Last month Slam filed a lawsuit against Lynk in Delaware for that reason, but Lynk disagreed. The merger dissolution includes dropping of all legal claims.
The outlook for Slam itself is uncertain. SPAC shareholders have the option at certain points to redeem their shares for cash, and many Slam investors have done so over time. Right now Slam has about 15.5 million shares, according to a June filing. They are worth about $179 million, far less than the $575 million in publicly traded shares Slam had shortly after its IPO.
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