Forbes Global Media Holdings Inc., the publisher of the famous Forbes Magazine, a business magazine that is published eight times a year featuring original articles on finance, investing, industry, and marketing topics, has announced today, Thursday, August 26, 2021, that it will become a publicly-traded company through a merger with an already publicly traded Special Purpose Acquisition Company (SPAC).
The company that is going to merge with Forbes is Magnum Opus Acquisition Limited (ticker: OPA), and the deal is expected to be valued at an implied pro forma enterprise value of $630 million. Forbes said that this merger will be closed by the end of the fourth quarter of the 2021 fiscal year (Q4 FY2021) or early in the first quarter of the 2022 fiscal year (Q1 FY2022) and it will have Forbes list its shares on the New York Securities Exchange (NYSE) under the ticker symbol “FRBS”.
After the merger, Forbes’ existing management team will maintain their positions under the leadership of Chief Executive Officer (CEO) Mike Federle but new members will join the board of the combined company at a later stage.
Forbes said the merger that will result in its going public will help the company create more deeply engaged audiences, improved quality services, and recurring revenue streams by capitalizing on its successful digital transformation, using technology and data-driven insights.
According to the Forbes website, the companies’ articles and publications reach more than 140 million people across all the company’s platforms online, social, virtual events, Live, Video, and print.
Over the past year, more companies have chosen the SPAC route to go public with other popular publications and media outlets choosing to go public through SPACs. Several digital publishers like New York-based entertainment publisher BuzzFeed, Vox Media, Bustle Digital Group, and Vice Media among others all held talks about their planned Initial Public Offerings (IPOs) via a SPAC.
A Special Purpose Acquisition Company (SPAC) is a shell company that raises funds in an IPO with the sole aim of merging with a private company. After the merger, the resulting company becomes a publicly-traded company.