Beachbody Makes Plans to Combine with MYX Fitness and Go Public

A Three-Way Merger

Fitness and nutrition company Beachbody is making plans for a three-way merger. Beachbody will join forces with MYX Fitness, which makes stationary bikes, and blank-check company Forest Road Acquisition Corp. (FRX).

The combined company, which will operate using the Beachbody name, is valued at almost $3 billion. Once the deal closes, the new company will trade on the New York Stock Exchange.

SPACs vs. IPOs

A special purpose acquisition company, also known as a SPAC or a blank-check company, is created to raise capital through an IPO in order to buy an existing company. SPACs usually need to find an acquisition target within a certain period of time, often two years. A private company will then go public by merging with a SPAC rather than going through their own traditional IPO.

Last November Forest Road Acquisition Corp. raised $300 million in an IPO, and since then it has been looking for companies seeking mergers. After receiving interest from at least 50 businesses, it has settled on merging with Beachboy and MYX Fitness. Forest Road’s team includes former TikTok CEO Kevin Mayer as well as Tom Staggs, a former CFO and COO of Disney (DIS).

Riding the Home Fitness Wave

Forest Road decided to merge with Beachboy and MYX because these companies have successfully capitalized on the at-home fitness boom which has taken place during the pandemic. Beachbody, which provides fitness streaming content as well as meal plans, has gained popularity during the pandemic and now has over 2.6 million paid digital subscribers. MYX has sold more than 27,000 bikes since they rolled out the product a year ago.

Analysts estimate that the new company will generate over $1.1 billion in revenue next year. Even when more of the population is vaccinated and some return to gyms, it is predicted that many people will stick to at-home fitness habits formed during the pandemic. This could help the new company and other at-home fitness businesses continue to see growth.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender