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.
Cancellations could be announced earlier this week, one said.
transaction, Announced in AugustWas open to the public with a valuation of $ 630 million in a merger with Hong Kong-based SPAC Magnum Opus Acquisition. 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 Wanted to open up the SPAC market To promote growth. However, not all traded, and some struggled.
Previous Axios report The outlook for Forbes SPAC trading looked bleak.
BuzzFeed Share, It was published through a SPAC transaction in December, Over 50% have fallen. 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.Especially last week, Snap, the owner of Snapchat, reported its revenue and profits. Lower than expected This quarter.
Some SPACs are still looking for media transactions. Last year, executives at Group Nine Media, a publisher 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 previous 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 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.