On Thursday, Forbes announced that it is going public. This time, the deal is between the company with Magnum Opus Acquisition, a renowned blank check firm. With this new revelation, the deal will have a value of a whopping $630 million. Although Forbes made the announcement of Thursday, it is most likely that the deal between the two giant firms will close end of 2021 or the start of 2022. In order to raise the needed amount, the organization that publishes the elite Forbes magazine will raise about $600 million from its gross proceeds. This amount is likely to be divided into two; $200 million will be cash, which is held in the MOA account, while the remaining $400 million will co me from the company’s private equity entity.
Speaking about the deal, Forbes said that it will use the transaction to its benefit. According to the magazine, that has a world following, it will use the incoming funds to convert its increasing client base into users who will be engaged or subscribe to the paper on a long-term basis. “We will convert our long-term readers into something bigger and better. Instead of our readers coming when they want to read particular news, we will use the funds to give them premium services such as recurring subscription, membership plans, as well as giving them premium products that are geared to bettering their lives,” said a Forbes manager.
Mike Fiderle, Forbes CEO said that the deal will not in any way interfere with the management of the company. Mr. Fiderle maintained that he will remain company CEO and the other top managers will still hold to their positions even as they work towards the completion of the deal. For many years, Forbes is known to conduct thorough research on who has what or who is who in this world. As such, the company has cut an edge for itself with no competitor over the years. Thanks to its authentic reporting, the brand has over 150 million readers most of whom are investors, high-end entrepreneurs and upcoming businessmen and businesswomen. The readership is drawn from more than 76 countries in the world.
Forbes is not the first giant company to announce that it’ll go public. In June this year, Buzzfeed announced that it was going public. The deal went on smoothly thus if Forbes’ goes through this year, it will be the second premium company to go public via SPAC.