Could Forbes Go Private Instead Of A SPAC Deal? Here's What The Latest Report Says

A leading financial media company could have an alternative to a previously announced SPAC merger, according to a new report.

What Happened: Investment firm GSV Asset Management could be bidding to buy Forbes Media in an alternative buyout for the company versus a previously announced SPAC merger, according to Axios.

The price tag on Forbes from GSV could value the company at $620 million.

Axios saw a pitch that includes investments from GSV Asset Management CEO Michael Moe and participation from “top family offices and institutional investors.” A new deal with GSV could be announced before the end of the year or in March 2022, according to the report.

“We are moving full steam ahead with SPAC transaction,” Forbes Media Chief Communications Officer Bill Hankes told Axios. “We remain on schedule to close the transaction in the first quarter.”

Related Link: Forbes Media Going Public Via SPAC: What Investors Should Know 

Why It’s Important: In August, Forbes Global Media Holdings announced a SPAC merger with Magnus Opus Acquisition Limited OPA. The deal valued the company at $630 million and included a $400-million PIPE.

Public OPA shareholders are set to own 24.1% of the new company assuming no redemptions. The deal is expected to close in the first quarter of 2022.

Another media company, BuzzFeed, recently completed its SPAC merger. Shares of BuzzFeed Inc BZFD have fallen significantly since the merger was completed and are trading at $5.83.

BuzzFeed saw 94.4% of its shares redeemed as part of the SPAC merger process, leaving the company with less money than projected as part of its public listing. SPAC expert Julian Klymochko broke down how the company might have actually lost money on going public via SPAC.

Forbes majority owner Yam Tak Cheung could secure $400 million through the transaction, but the amount depends on redemptions, Axios reports.

Forbes was pursuing a private sale prior to the SPAC merger being announced. GSV was one of several companies mentioned as being in talks with Forbes earlier this year.

Price Action: OPA shares traded at $9.89 Tuesday afternoon. Shares have traded between $9.56 and $10.17 over the last 52 weeks. Given shares trading below the $10 net asset value level, the stock could see heavy redemption at merger.

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Posted In: M&ANewsRumorsSmall CapIPOsMediaAxiosBuzzFeedForbesForbes MediaGSV Asset ManagementJulian KlymochkoMichael MoeSPACSPACs
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