Forbes Global Media has put the kibosh on its deal to go public via an acquisition by a SPAC.
The iconic media company Forbes has terminated its plans to get listed on the New York Stock Exchange (NYSE) via an acquisition by special purpose acquisition company (SPAC) Magnum Opus Acquisition. The deal was initially announced in February, and cryptocurrency exchange Binance had put a US$200 million investment on the table. The deal would have valued Forbes at US$630 million, according to media reports.
In its statement confirming the deal’s termination, Forbes pointed to the company’s strong revenue and earnings growth over the past year, which «significantly outperformed» the estimates provided for the SPAC transaction.
SPACs Turn Infamous?
But media reports said that the deal got the axe as SPACs have been losing popularity after some high-profile acquisitions turned sour once they hit the markets. The «Wall Street Journal» reported, citing data from research firm Audit Analytics, that at least 25 firms merged with SPACS in 2020 and 2021 have issued «going concern» warnings – or a warning that a company may not be able to stay in business for the next year. Recent market volatility has also been a factor slowing acquisitions by SPACs.
A Binance spokesperson said the cryptocurrency exchange was reviewing options and was looking forward to working with Forbes ahead, according to a media report. The exchange had been expected to advise Forbes on its digital assets and its strategy for Web3, which is a conceptual new iteration of the world wide web based on blockchain technology. Web3 has not yet been implemented. Binance did not immediately return finews.asia’s emailed request for comment on whether the crypto player still planned to invest in Forbes.
