Forbes caught between a SPAC and a private place
The Future. Forbes Media is already finalizing a deal to go public via a SPAC, but investment firm GSV wants to snap it up for $620 million. The battle between a SPAC merger or a private buyout highlights a changing market for digital publishers… which may once again redefine what makes publishers successful in a world where ad-spend is almost exclusively dedicated to social platforms.
Everyone wants a piece of Forbes.
- Investment firm GSV wants to buy Forbes Media for $620 million.
- But Forbes is preparing to go public via a SPAC merger with Magnum Opus Acquisition that is expected to close next quarter.
- The SPAC merger values Forbes Media at $630 million.
So, why would Forbes Media even consider a private buyout when GSV is offering less cash than the company’s potential SPAC merger? Blame it on BuzzFeed. After the publisher recently went public via a SPAC, shares dropped 40% after 94% of investors pulled out at the eleventh hour.
That’s not necessarily an indictment against BuzzFeed’s business and cultural influence, but of the fickle nature of SPACs (which many think have already run their course) only serving as a launching pad for companies to go public even if the market isn’t quite ready.