Slam Corp, a shell company founded by former MLB player Alex Rodriguez, is taking legal action against Lynk Global. The lawsuit aims to prevent Lynk Global from terminating their long-delayed merger. Investors recently approved extending the merger deadline to December 25th, despite Lynk Global citing a June 30th termination date outlined in their agreement.
The lawsuit filed by Slam Corp seeks to prevent Lynk Global from terminating the deal, claiming a breach of contract and a failure to operate in good faith. Lynk Global, in a June 24th press release, dismissed these claims as baseless and vowed to vigorously defend itself, even planning to file counterclaims. The companies initially planned to finalize their merger last year, following an agreement in February 2024. This was three years after Slam Corp raised $575 million through an IPO.
However, significant delays and investor redemptions have left Slam Corp with only $23.7 million in its trust account as of June 5th. A planned $110 million PIPE (Private Investment in Public Equity) deal also faces uncertainty. Meanwhile, Lynk Global's February regulatory filing revealed they secured $85 million towards a $215 million Series B funding round, backed by satellite giants SES and Intelsat—companies that are also merging. The appointment of Ramu Potarazu, a former Intelsat executive, as Lynk Global's CEO in November adds another layer to this complex situation.
Lynk Global is actively seeking funding to expand its satellite constellation and enhance its capabilities. The company has deployed five satellites in low Earth orbit, currently offering intermittent texting and low-bandwidth services via partnerships with telcos in various countries. The timing of Lynk Global's attempt to withdraw from the merger is notable, given the growing interest and activity in the direct-to-smartphone satellite market. Competitors like AST SpaceMobile are preparing for beta service launches, and SpaceX plans to introduce image and audio messaging via Starlink in October, in addition to basic texting services.