Lowenstein Sandler represented Tel Aviv-based Cyabra Strategy Ltd., an AI-powered solution for combating worldwide disinformation, in the signing of a definitive agreement for a business combination with Trailblazer Merger Corporation I (NASDAQ: TBMC), a special purpose acquisition company (SPAC) that is expected to result in Cyabra being publicly listed on the NASDAQ. The transaction values Cyabra at a total enterprise value of $70 million at signing.
The spread of disinformation is one of the most pressing challenges facing society today, undermining trust in brands, individuals, communities, and democratic institutions. At a time when students are bullying their peers using AI generated fake content and automated distribution bots, nation states disseminate false narratives to impact public opinion on elections and military conflicts, and mega corporations spread misinformation about competitors, impacting tens of thousands of workers and shareholders for financial profit. The battle against misinformation has escalated to where 87% of executives say that the spread of disinformation is one of the most significant reputational risks to businesses today. The economic impact alone is estimated to be $78 billion, according to a study conducted jointly by the University of Baltimore and CHEQ, a company specializing in cyber security.
Founded by veterans of elite Israeli intelligence units, Cyabra is on the front lines of this informational warfare, identifying illicit bot campaigns and providing tools to combat the bad actors in the ongoing fight to restore trust in the digital realm.
The Lowenstein team included Annie Nazarian Davydov, Dotan Barnea, Lauren E. VanderDrift, Brian A. Silikovitz, Andrew E. Graw, Dana Quinn, and Alexander Dinur.