Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forbes to go public via $630 million SPAC merger to expand consumer business

Stock MarketsAug 26, 2021 03:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Forbes magazine is seen on a board at the St. Petersburg International Economic Forum 2017 (SPIEF 2017) in St. Petersburg, Russia, June 1, 2017. REUTERS/Sergei Karpukhin/File Photo

By Niket Nishant and Krystal Hu

(Reuters) -The publisher of Forbes magazine will go public through a merger with a blank-check firm in a deal that values the combined entity at $630 million, the companies said on Thursday, the latest example of media companies catching the boom of special purpose acquisition companies (SPACs).

Forbes, one of the oldest media outlets in the United States, will merge with Hong Kong-based Magnum Opus Acquisition Ltd, a SPAC led by Jonathan Lin, a former executive at billionaire Steven Cohen's Point72.

The deal will allow Forbes to invest further in building consumer-focused products as the company reduces reliance on media revenue, Forbes Chief Executive Mike Federle said in an interview.

With print revenue sliding, the business news outlet has been doubling down on live events and leveraging its brand and reader base to build consumer products in areas including education and e-commerce. It reported $163 million in revenue in 2020 and expects it to grow to $193 million this year.

"We've created this audience and business scale with 150 million people. This funding will allow us to create bespoke products that address these different industry cohorts as we focus on direct-to-consumer conversion," said Federle.

Jersey City, New Jersey-based Forbes was founded in 1917 by B.C. Forbes, and his family retains a minority share. The magazine is led by his grandson, Steve Forbes, currently chairman and editor-in-chief, who made failed runs for U.S. president in 1996 and 2000 in the Republican primary.

The Forbes company was valued at $475 million when Hong Kong-based investor group Integrated Whale Media Investments bought a majority stake in 2014.

The company was also in talks with other bidders, including a consortium led by tech investor Michael Moe, which would have allowed it to stay private, Reuters reported https://www.reuters.com/business/media-telecom/exclusive-forbes-pursues-spac-talks-amid-new-takeover-interest-sources-2021-04-29 in April.

With the SPAC deal, Forbes joins other media outlets, including BuzzFeed, which agreed to a blank-check merger in June, and Vox Media, which is also reported to be pursuing such a merger.

In a sign of renewed deal interest in the digital media sector, German publisher Axel Springer said on Thursday it will acquire U.S. political news website Politico.

The Forbes deal is expected to bring $600 million in proceeds and includes a private investment in public equity of $400 million.

The unusually large PIPE comes at a time when the broader SPAC market has been weighed down by heightened regulatory pressure and saturated demand, with companies struggling to attract the interest of leading Wall Street institutional investors.

Forbes shareholders will own nearly 22% of the combined company, assuming no redemptions by Magnum's investors, and the company will be left with $145 million in cash. Magnum raised $200 million in a March IPO.

SPACs raise funds in an IPO with the aim of merging with a private company, which then becomes public.

After the deal closes, Forbes will list on the New York Stock Exchange under the ticker symbol "FRBS."

Forbes to go public via $630 million SPAC merger to expand consumer business
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Barak David
Barak David Aug 26, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so thats how much fake news are worth for Steven Cohen? wow im working in the wrong industry
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email