Forbes scrapping plans to go public
Forbes has decided to call off a deal to go public through a special-purpose acquisition company, also known as a SPAC, amid cooling investor appetite, reports Lauren Hirsch and Benjamin Mullin of the New York Times.
Hirsh and Mullin report, “The cancellation could be announced as early as this week, one of the people said.
“The deal, announced in August, would have taken the company public at a $630 million valuation through a merger with Magnum Opus Acquisition, a SPAC based in Hong Kong. In February, Forbes said it had agreed to a $200 million investment from Binance, a cryptocurrency exchange, as part of the deal.
“SPACs, also known as blank-check firms, are publicly traded shell companies that raise money with the express purpose of taking a private firm public. Investor enthusiasm around blank-check companies peaked early last year but deflated after a number of SPACs failed to live up to their promises to investors.”
Read more here.