Publish date:

Forbes Plans to Go Public Via SPAC Merger With Magnum Opus

Forbes Global Media, publisher of the financial magazine Forbes, will go public via a SPAC merger with Magnum Opus.
Author:

Forbes Global Media Holdings, the publisher of financial magazine Forbes, said it would go public by merging with special purpose acquisition company Magnum Opus Acquisition. OPA

The deal is expected to raise $600 million, including $200 million cash from Magnum Opus and $400 million through a private placement of the new company's shares, according to the company's news release

After the deal Forbes holders will own 22% of the new company. Forbes will be capitalized with $145 million.

"With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy," said Forbes CEO Mike Federle.

Forbes will trade on the New York Stock Exchange under the ticker symbol FRBS.  

Forbes says that its brand reaches more than 150 million people worldwide and includes 45 licensed local editions covering 76 countries. It also says that Forbes is among the top 50 most visited websites on the internet. 

TheStreet Recommends

Cramer Says AMAT Is 'Buyable.' What Do the Charts Say? Real Money

SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.

So far, 2021 has seen 416 SPAC IPOs with total proceeds of $121.8 billion, according to SPAC Track. That compares to 248 SPAC IPOs in all of 2020.

The tech industry has by far been the most active in the SPAC space, with 228 announced SPAC targets leading to 59 definitive agreements. 

The media/telecom industry has been one of the least active with five definitive agreements reached in 2021. 

At last check Magnum Opus shares were trading up 0.9% at $9.84.

Checkout Boardroom Alpha for ongoing tracking, analytics, and data on SPACs. Boardroom Alpha's SPAC Data and Analytics service.