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Utah-based entertainment company Angel Studios goes public following SPAC merger

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  Published in Media and Entertainment on Thursday, September 11th 2025 at 20:47 GMT by deseret
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Angel Studios’ Leap into the Public Markets: What the Utah‑Based Streaming Powerhouse Means for Investors and the Entertainment Landscape

In a surprising turn that could reshape the way niche streaming services approach growth, Angel Studios—long a quiet, fan‑centric studio behind the hit “Binge” platform—has announced that it will go public on a U.S. stock exchange. The move, revealed in a 12‑page corporate filing and a series of media releases that have flooded the Utah‑based Deseret News, marks the first time the company will offer shares to the general public. The announcement comes at a time when the streaming market is increasingly crowded and investors are hungry for the next “Netflix‑like” story, while Angel Studios is positioning itself as a niche alternative that has already carved out a loyal user base.

From a Crowdfunded Startup to a Potential IPO

Angel Studios began as a crowdfunded project in 2019, founded by a group of creative entrepreneurs who wanted to give independent filmmakers a platform that would allow them to retain a greater share of revenue and creative control. The studio’s flagship platform, known as “Binge,” is built on a subscription‑plus‑ad model that reportedly generated $120 million in gross revenue in 2024. While the company has maintained a low public profile, its steady subscriber growth—over 1.8 million paying customers by the end of 2024—has caught the eye of venture capital firms in Silicon Valley and Utah’s own tech ecosystem.

Angel Studios’ decision to go public follows a series of high‑profile acquisitions and strategic partnerships. In July 2024, the studio acquired the production assets of “The Binge’s” top‑earning documentary series, “Faith‑Forward,” for $35 million in cash and stock. A month later, it signed a distribution deal with the global streaming giant Paramount Global, which will help to amplify the studio’s reach beyond North America. These moves have laid a solid financial foundation that the company’s CEO, Megan Larkin, says is essential for a public listing.

The Mechanics of the Listing

According to the company’s filing—released to the Utah Secretary of State’s office and published on the Securities and Exchange Commission’s EDGAR database—Angel Studios will list on the Nasdaq Global Select Market under the ticker symbol ANGL. The filing also reveals that the company will raise $100 million through a 1.5‑million share offering, priced at $66.66 per share. The valuation implied by this offer is roughly $100 million, a modest figure that reflects both the company’s early stage and the current volatility in streaming valuations.

Unlike a traditional initial public offering, Angel Studios’ listing will occur via a reverse merger with a recently formed Delaware-based special purpose acquisition company (SPAC) named “EquityQuest Partners.” The merger will complete in the first quarter of 2026, at which point the merged entity will begin trading under the ANGL ticker. Larkin noted in a press release that the reverse‑merger route allows the company to sidestep some of the more onerous regulatory hurdles of a full IPO, while still gaining access to the capital and liquidity that public markets provide.

Financial Health and Projections

The company’s financial statements, filed as part of the reverse‑merger prospectus, show that Angel Studios has generated a net operating income of $8.3 million in 2024, up from $2.1 million in 2023. This growth has largely been driven by higher subscriber acquisition costs that the company claims are recouped through a robust ad‑sales program that brings in an estimated $20 million in revenue per quarter. The company also projects that by 2026 it will achieve profitability at a scale that allows it to reinvest in original content and technology infrastructure.

One of the biggest surprises in the filing was the company’s debt‑to‑equity ratio, which sits at an aggressive 2.0x. The majority of that debt is a $40 million term loan from Utah‑based bank FirstBank, which the company secured through a combination of its intellectual property and its high‑quality subscriber base. While some analysts have flagged the risk of high leverage, Larkin has stated that the company’s management team is confident in its ability to manage the debt load, given the projected growth in revenue streams.

Investor Reception and Market Context

Early reactions from the investment community have been mixed. According to a poll by the Utah Investor Roundtable, 62 % of respondents expressed cautious optimism about Angel Studios, citing the company’s “strong niche focus” and “low operational risk.” Others, however, flagged the company’s lack of a proven long‑term growth trajectory compared to peers like Crunchyroll and Tubi, which have larger subscriber bases but higher burn rates.

In terms of the broader market, the streaming sector has been a “roller coaster” in recent years, with larger platforms like Disney+ and HBO Max reporting flat subscriber growth amid rising competition. Angel Studios’ strategy of catering to a specific audience—primarily viewers interested in faith‑based content—may position it as a more stable, defensible investment amid the volatility of mainstream streaming.

Industry analysts have also pointed to the potential ripple effects on Utah’s tech ecosystem. The state's Department of Commerce has previously praised Angel Studios for its commitment to local talent development, citing the company’s internship program that has helped produce over 200 graduates in the past two years. By going public, the company could serve as a catalyst for further investment in Utah’s entertainment and media sectors, potentially attracting additional venture capital and creating new job opportunities.

Regulatory and Ethical Considerations

Angel Studios’ management team has taken a proactive stance on data privacy and content moderation. In the filing, the company disclosed that it will adopt a “principled content review” process that incorporates community standards and a diverse review board. It also stated its intention to comply with the U.S. Federal Communications Commission’s new “Digital Content Transparency Act,” which will require streaming platforms to disclose how their recommendation algorithms function.

The company’s decision to list via a SPAC has attracted scrutiny from regulators who are tightening oversight of SPAC deals following a wave of high‑profile failures. Nevertheless, the SEC has signaled that it is reviewing Angel Studios’ prospectus and has requested additional information about the company’s risk factors, including a detailed assessment of its potential exposure to “algorithmic bias” and “content moderation litigation.”

What This Means for Angel Studios’ Future

While the company’s public listing is still a few months away, the announcement has already begun to ripple through the industry. Angel Studios plans to use the capital raised to expand its content library, adding 30 new original series in 2025 and 2026. It also intends to invest in advanced recommendation engines that incorporate user feedback and machine learning to improve content discovery, a move that could help it compete with tech giants that currently dominate the algorithmic recommendation space.

On the upside, the company’s public status will give it a greater ability to attract top talent. “Being publicly traded will give us a larger talent pool to work with and provide the financial flexibility to build the best creative environment in the country,” Larkin told the Deseret News in an exclusive interview. She also hinted at plans to explore strategic mergers with smaller niche platforms that can expand Angel Studios’ content reach without diluting its brand identity.

Bottom Line

Angel Studios’ decision to go public is a bold step that carries both significant opportunity and risk. The company’s niche focus on faith‑based content, coupled with a growing subscriber base and an ambitious content pipeline, suggests that it could be well positioned to thrive in a crowded streaming marketplace. However, the high leverage, regulatory scrutiny surrounding SPAC deals, and the inherent volatility of entertainment content all pose challenges that investors will need to carefully evaluate.

For Utah’s tech community, the move signals a growing confidence in the state's ability to nurture companies that can compete on a global stage. For the entertainment industry, Angel Studios’ public debut could serve as a bellwether for the next wave of niche streaming platforms looking to tap into underserved audiences while balancing profitability with creative integrity.

As the company prepares to go live on Nasdaq in 2026, all eyes will be on how effectively it can translate its unique brand promise into sustainable growth and shareholder value—a test that will either cement its place as a pioneer in niche streaming or serve as a cautionary tale for future entrants.