Following the announcement of the Forbes merger with Magnum Opus as a part of the media company’s strategy to go public, Forbes further laid out details on its post-IPO period.
Magnum Opus Acquisition Ltd is a Hong-Kong based SPAC (special purpose acquisition company). The company is led by Jonathan Lin, who formerly worked as an executive at billionaire Steven Cohen’s Point72.
Forbes after IPO: what changes it’s gonna bring
According to Reuters, the deal uniting both companies will give Forbes the opportunity to invest further in building consumer-focused products. This, according to its Chief Executive, Mike Federle, is an attempt to reduces the company’s reliance on media revenue.
Printed magazines are no longer bringing in profits as much as it was. Instead, Forbes has been building consumer products by doubling down on live events and leveraging its brand and reader base. Forbes has been commencing the strategies by reaching areas like education and e-commerce.
Noted from Reuters, the company generated $163 million in revenue in 2020. The number is expected to expand to $193 million this year.
“We’ve created this audience and business scale with 150 million people. This funding will allow us to create bespoke products that address these different industry cohorts as we focus on direct-to-consumer conversion,” Federle explained, as quoted from Reuters.
The IPO plan makes Forbes the latest example of media companies catching the boom of SPACs. Buzzfeed has jumped first into the bandwagon in June, while Vox Media is reportedly pursuing a similar method to go public.
Accordingly, Forbes shareholders will hold nearly 22% of the combined company. This is based on the assumption that there are no redemptions by Magnum’s investors. Magnum will further receive the remaining $145 million in cash. Back in a March IPO, Magnum has managed to raise $200 million.
Read also: SPAC Fever Continues with Forbes Next in Line
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