NEW YORK - Infinite Reality, a provider of virtual and AI-powered immersive experiences, has signed a definitive agreement to purchase the Drone Racing League (DRL) for $250 million. This acquisition is set to increase Infinite Reality's valuation to $3.5 billion.
DRL, known for integrating high-tech robotics and artificial intelligence into its drone racing events, aligns with Infinite Reality's (iR) vision of creating more interactive and immersive consumer experiences. The acquisition is part of iR's strategy to expand its portfolio, which includes various tech and entertainment entities such as Ethereal Engine, iR Studios, and eSports franchises.
The merger will leverage DRL's technology and sports ecosystem to enhance iR's consumer engagement capabilities. John Acunto, CEO of Infinite Reality, envisions a future where sports and entertainment are more immersive, with fans experiencing the thrill of events beyond traditional viewing platforms.
The acquisition comes as the demand for interactive sports consumption is rising, especially among younger audiences. DRL has successfully captured the interest of nearly 100 million young fans globally through its tech-driven competitions and interactive viewing experiences.
DRL CEO & Founder Nicholas Horbaczewski, who will be promoted to iR Global President, expressed excitement about joining forces with a company that shares a vision for the future of sports and technology. Rachel Jacobson, DRL President, will become iR President, Global Business Ventures and Partnerships, and looks forward to blurring the lines between digital and real-world experiences.
The transaction, which is subject to regulatory approvals and closing conditions, is expected to close in the second quarter of 2024. It follows Infinite Reality's proposed public offering with Newbury Street Acquisition Corporation (NASDAQ: NBST).
Information regarding this acquisition is based on a press release statement.
InvestingPro Insights
As Infinite Reality gears up for its acquisition of the Drone Racing League, integrating high-tech AI and robotics into its immersive consumer experiences, it's worth noting the financial health of its SPAC partner, Newbury Street Acquisition Corporation (NASDAQ: NBST). With a modest market capitalization of $63.49 million, NBST is navigating the competitive tech and entertainment landscape.
InvestingPro data indicates that NBST carries a negative Price/Earnings (P/E) ratio of -225.83, reflecting challenges in profitability over the last twelve months as of Q3 2023. This aligns with an InvestingPro Tip highlighting that the company has not been profitable during this period. Additionally, the company's short-term obligations surpassing its liquid assets suggest a need for careful financial management post-acquisition.
Despite these financial hurdles, NBST's stock has shown resilience with a 1 Year Price Total Return of 5.55%, suggesting investor confidence may be present. It is also worth noting that NBST does not pay a dividend, which could be a consideration for income-focused investors.
For those looking to delve deeper into NBST's financials and future prospects, InvestingPro provides additional tips, including insights into the company's low price volatility and weak gross profit margins. There are a total of 5 InvestingPro Tips available for NBST, which can be found at InvestingPro. For a more comprehensive analysis, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a valuable resource for informed investment decisions.
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