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Forbes Plans Public Listing via SPAC Merger with Magnum Opus

UTC by Bhushan Akolkar · 3 min read
Forbes Plans Public Listing via SPAC Merger with Magnum Opus
Photo: Unsplash

As Forbes is looking to capitalize on its digital transformation, the media giant is looking to raise a total of $600 million through its public listing.

On Thursday, August 26, Forbes Global Media Holdings Inc shared their decision to go for a public listing. The merger will happen through a special purpose acquisition company Magnum Opus Acquisition. Forbes shares will trade on theNew York Stock Exchange (NYSE) under the FRBS ticker symbol.

According to the announcement, Forbes is looking to raise a total of $600 million from open markets. Thus, it includes $200 million through cash from Magnum Opus. Besides, an additional $400 million will come through the private placement of the company’s shares.

Forbes also stated that it will close this transaction by the end of 2021 or early 2022. Forbes believes that the public listing will help its parent company to capitalize on the digital transformation. Besides, it can also leverage data-driven insights to ensure recurring and high-quality revenue streams.

Upon completion of the transaction, the combined company will continue to work under the leadership of current CEO Mike Federle. Speaking further of this development, the Forbes CEO said:

“Leveraging our iconic global brand, Forbes has been executing a data-led platform strategy and is fast becoming the gateway for businesses, entrepreneurs and consumers to join the conversations and participate in the trends that are shaping the world today. With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realize the potential of our iconic brand.”

Maximizing Brand Equity

Forbes believes that the SPAC merger will help the financial media house in maximizing brand equity. Besides, it will leverage its proprietary technology stack and data analytics to convert its users into long-term paying clients.

Forbes plans to do it through exclusive memberships, highly targeted product offerings, and recurring subscriptions to premium content. the Forbes brand has already reached more than 150 million people worldwide.

It has also emerged as one of the most trusted financial journalism media houses. The Forbes brand further expands to education, real estate, and financial services license agreements. Looking at its digital footprint, Forbes is also one of the top 50 most visited websites in the world.

“The Forbes platform is defined by high-quality, high-impact journalism, product offerings and a loyal user base. We are pleased to partner with the experienced management team to support initiatives to accelerate growth in high-quality and recurring revenue verticals. Forbes has the expansive reach and is successfully broadening and deepening engagement through data-informed content curation that delivers what each Forbes user cares most about,” said Jonathan Lin, Chairman and CEO of Magnum Opus.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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