Harry Potter: Hogwarts Mystery mobile game publisher Jam City has filed to go public through a special purpose acquisition company, or SPAC. Jam City is using some of the money to buy Canadian mobile game publisher Ludia for $175 million.
SPACs enable companies to go public by merging with a public shell company, enabling them to skip the long process for initial public offerings.
For Chris DeWolfe, the founder of the Los Angeles-based Jam City, the move represents a personal redemption. He did pioneering work as the founder of MySpace, but he lost out in the social networking wars with Facebook.
“Our goal was to create one of the largest mobile entertainment companies in the world,” DeWolfe said. “We’re not quite there, but we are one stepper closer to taking the company public.”