Starry Internet Is Said to Discuss Merger With FirstMark SPAC
Broadband internet service provider Starry Inc. is in advanced talks to go public through a merger with blank-check company FirstMark Horizon Acquisition Corp., according to people with knowledge of the matter.
Boston-based Starry and the special purpose acquisition company, or SPAC, would have a combined value of more than $1.5 billion, the people said, asking not to be identified discussing private information. A transaction could be announced as soon as Thursday, they said.
The companies would also raise more than $100 million in an equity placement from investors to support the deal, the people added.
Representatives for Starry and FirstMark declined to comment.
Starry’s service is available in Boston, New York, Washington, Denver and Los Angeles, according to its website. The company says it provides next-day or same-day installation.
The business was started in 2014 by Chet Kanojia, who previously founded internet television service Aereo. Aereo used tiny antennas to capture over-the-air television signals and stream programming to subscribers. The company drew the ire of broadcasters and filed for bankruptcy after losing a court fight that went all the way to the U.S. Supreme Court.
Starry has partnerships with residential property owners including JPMorgan Chase & Co.’s asset management unit as well as Brookfield Properties, according to its website.
FirstMark Horizon is backed by venture capital firm FirstMark, which says on its website that it’s an investor in Starry.
The SPAC raised $414 million in its initial public offering a year ago. The vehicle, led by Chief Executive officer Richard Heitzmann and President Amish Jani, had a mandate to look for a merger target in the technology sector, according to its filings with the U.S. Securities and Exchange Commission.Read more