Forbes to go public in US$630m SPAC merger

Forbes plans to merge with special purpose acquisition company (SPAC) Magnum Opus Acquisition to go public. The merger is expected to valued at a pro forma enterprise value of US$630 million, net of tax benefits. The move will enable Forbes to further capitalise on its digital transformation. The deal is expected to close in the late fourth quarter 2021 or early first quarter 2022.

Forbes’ existing management team will continue to manage the combined company upon completion of the transaction under the leadership of CEO Mike Federle. The company said the transaction will help maxmise its brand and enterprise values and use its proprietary technology stack and analytics to convert readers into long-term, engaged users of the platform. These include memberships and recurring subscriptions to premium content and highly targeted product offerings.

The combined company will announce new, independent members to its board of directors at a later date. Forbes will also ensure its board of directors reflect the values of diversity and inclusion. Forbes currently has a reach of more than 150 million people globally and has 45 licenced local editions covering 76 countries.

Federle said with the transition into a publicly-traded company, Forbes will have the capital to accelerate growth by executing its content and platform strategy and fully realise the potential of the brand.

Meanwhile, chairman and CEO of Magnum Opus, Jonathan Lin, said the transaction "fits perfectly" with the company's strategy to support enterprises leveraging digitalisation to craft more tailored user experiences, and big data analytics to create a positive feedback loop and multiple touchpoints with customers.

Forbes is not the only media company that plans to go public via a SPAC merger. Earlier this year, Buzzfeed announced that it aims to go public by mergering with SPAC 890 Fifth Avenue Partners, which has US$288 million in cash in trust. Buzzfeed also secured about US$150 million in convertible note financing led by Redwood Capital Management and including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial LP.

Going public via a merger with SPACs is making more headlines in recent times. Grab, for example, announced its merger with Altimeter Growth Corp in April to raise about US$4.5 billion in cash, valuing Grab's shares at US$39.6 billion. At the same time, PropertyGuru and Taboola have also taken a similar approach to go public.

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