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#Forbes to become public company through $630M SPAC merger

#Forbes to become public company through $630M SPAC merger

Forbes Global Media, the publisher of Forbes magazine, said Thursday that it will go public through a merger with a blank-check acquisition firm in a deal that values the combined entity at $630 million.

The company said it will merge with special purpose acquisition company Magnum Opus Acquisition in order to go public in a deal that is expected to close at the end of 2021 or early in 2022. Forbes will then trade on the New York Stock Exchange under the ticker symbol “FRBS.”

The deal with Magnum Opus, which is expected to raise $600 million in proceeds for Forbes, also includes a private investment in public equity, or PIPE, of $400 million.

Forbes’ existing management team will stay in place under the leadership of Chief Executive Mike Federle, and once combined, a new board will be announced, the company said.

Forbes magazine, which was founded in 1917 by B.C., has long championed capitalism and entrepreneurship and is perhaps best known for its annual list of the world’s wealthiest people.

Forbes magazine on a Samsung Galaxy tablet in hands.
Forbes is looking to continue its digital transformation via the SPAC merger.
Alamy Stock Photo

Forbes has evolved from a print publication into a digital media company. It now relies more on key franchises like Under 30, conferences and a slew of brand extensions in real estate and education, as well as advertiser-paid content, than on magazine sales.

The company said its brand reaches more than 150 million people worldwide, and added that the SPAC merger will help it “further capitalize” on its “digital transformation.” Earlier this year, Forbes was in talks to sell itself for $650 million, but some critics said that valuation was too high.

“With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realize the potential of our iconic brand,” said CEO Federle.

SPAC deals have become a popular way for companies to go public. This year alone, several digital publishers, including Buzzfeed, Bustle Digital Group, Vox Media and Vice Media, have all held talks about a market debut via a SPAC merger.

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