Forbes, a wealth-obsessed business publication, has decided to cancel its disclosure deal through a special-purpose acquisition company, also known as SPAC, as investors’ desire for once-popular financial products diminishes. The plan said.
Announcing the cancellation may come earlier this week, one said.
First announced in August, the deal will be listed at a valuation of $ 630 million due to a merger with Hong Kong-based SPAC Magnum Opus Acquisition Limited. In February, Forbes said it had agreed to invest $ 200 million from the cryptocurrency exchange Binance as part of the transaction.
SPAC, also known as a blank check company, is a listed shell company that raises funds for the explicit purpose of exposing private companies. Investor enthusiasm for blank-checking companies peaked early last year, but declined as many SPACs failed to meet their promises to investors.
Regulators, including Gary Gensler, chairman of the Securities and Exchange Commission, have stepped up SPAC oversight and plunged shares in many companies publicly traded through blank-checking companies.
Forbes was one of several media companies that wanted to open up the SPAC market to drive growth. However, not all traded, and some struggled.
Previous Axios report The outlook for Forbes SPAC trading looked bleak.
BuzzFeed shares, which went public through SPAC trading in December, fell by more than 50%. As investors entered the market, Vice’s efforts to publish through SPACs stumbled, and instead media companies sought to raise more money from individual investors. In the media industry, there are clues over the state of the advertising market, especially after Snapchat owner Snap Inc. said last week that its revenues and profits would be lower than expected this quarter.
Some SPACs are still looking for media transactions. Last year, executives at Group Nine Media, a publisher that recently sold to Vox Media, launched their own blank-checking company aimed at integrating the digital media sector.
Forbes has been doing well since it was agreed to be released by Magnum Opus. This indicates that canceled transactions may reflect SPAC’s unfavorable market. Forbes announced in February that it had generated $ 94 million in revenue in the fourth quarter of last year. This is a 51% increase over the same period last year. Earnings for the quarter were $ 18 million, an increase of 80% over the previous year.
Founded as a magazine in 1917, Forbes is known for its ranking of wealthy businessmen. Last year, Forbes said it reached more than 150 million people in journalism, events and marketing programs.Forbes family Sold a majority stake In the company to whale media investment integrated in 2014.
Forbes still publishes prints eight times a year in the United States, with 45 licensed local versions covering 76 countries.
