Forbes, the magazine-centric, wealth-focused media business has scrapped its plans to IPO through a merger with Magnum Opus Acquisition, a special purpose acquisition company (SPAC). The New York-based company had announced its intention to IPO almost 12 months ago, at a $630m valuation. But SPACS have fallen from favour in recent months, not least because regulators have tightened the rules on how such investments can be described and promoted. Much of the exhuberance for SPACs has disappeared along with the prospectus hype.
Integrated Whale Media (IWM), of Hong Kong, had purchased 51% of Forbes Media Holdings from the Forbes family and venture capital firm Elevation Partners at a $475m valuation in 2014. Since then, IWM has made repeated attempts to sell its stake.
Forbes was founded by Bertie Charles Forbes, a Hearst newspaper columnist, in 1917. It is best known for its billionaires list, and its data is licensed by economists studying wealth trends. In recent years, most of the revenue of the magazine, which publishes eight print issues a year and has 45 licensed editions around the world, has come from its website and events including its 30 Under 30 conferences.
The 105-year-old magazine reported a $38m net profit for 2021 but the fourth quarter revenue of $94m was reportedly 51% ahead of the corresponding period of 2020. In February, the cryptocurrency exchange Binance – which had aimed to help build Forbes’s coverage of digital assets – had announced a $200m investment in the proposed Forbes SPAC deal.
It is assumed that the Forbes majority owner will now return to its former plans for a (lower price) trade sale, presumably with Axel Springer and the New York Times back in the frame. Perhaps even News Corp/ Dow Jones too.
