Binance-Supported Deal for Forbes to Go Public Via SPAC Is Called Off
Binance had invested $200 million in Forbes earlier this year as part of the plan.
May 31, 2022 at 10:23 p.m. UTCUpdated Apr 9, 2024 at 11:45 p.m. UTC
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Changpeng Zhao, founder and chief executive officer of Binance (Bloomberg/Getty Images)
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Forbes Global Media Holdings confirmed Wednesday its shareholders have terminated plans to go public through a special purpose acquisition company (SPAC).
- The New York Times reported the news Tuesday, citing two people familiar with the matter.
- The Times attributed the decision, which would have taken Forbes public at a $630 million valuation through a merger with Hong Kong-based SPAC Magnum Opus Acquisition Ltd. (OPA), to waning interest in the once-popular investment vehicle because several recent SPACs have not performed well.
- In February, Binance announced it was making a $200 million strategic investment in Forbes and Magnum Opus Acquisition to help fund Forbes' digital growth in a deal that would make Binance one of the top investors in the media firm.
- At the time, Binance CEO Changpeng Zhao said that "as Web 3 and blockchain technologies move forward and the crypto market comes of age we know that media is an essential element to build widespread consumer understanding and education. We look forward to bolstering Forbes’ Digital initiatives, as they evolve into a next level investment insights platform."
- Late Tuesday, A Binance spokesperson told CoinDesk that "we’re continuing to review all possible options and look forward to working with the leadership team at Forbes in the months ahead."
- Meanwhile, Axios reported earlier Tuesday the deal had until the end of business on Tuesday to file paperwork with the U.S. Securities and Exchange Commission to close its merger. If nothing is filed, either party involved can walk away from the deal.
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UPDATE (May 31, 2022, 00:17 UTC): Updates with Binance's comment.
UPDATE (June 1, 2022, 12:53 UTC): Updates with a confirmation from Forbes on Wednesday.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.