![]() Some academics have criticized SPACs for offering poor returns to public shareholders, although the sponsors of the deals are much more likely to profit handsomely. SPACs, which soared to popularity in 2020 during what was known as the ‘blank check boom’, involve the public listing of a shell corporation, which uses the funds raised from the IPO to seek out and acquire a private company, taking the target company public through the merger. Magnum Opus Acquisitions is led by (left to right) Chairman and CEO Jonathan Lin, President Frank Han, and Director and CFO Kevin Lee ![]() ‘They're pushing hard to go public right in the middle of this market correction,’ the person added. ‘Why is Forbes, which is one of the premier business brands in the world, going public via a SPAC with a bunch of guys in Hong Kong?’ said the senior source at Forbes. It has led some within Forbes to question the mechanics and timing of the deal. Since 2014, Forbes has been privately controlled by a Hong Kong-based investor group, Integrated Whale Media Investments.īut the magazine’s pending sale to a SPAC created with seed funding from the Mainland Chinese government comes amid a crackdown on the free press in Hong Kong. Spokespersons for the senators did not respond to inquiries from on Monday. In recent days, Senator Dan Sullivan, an Alaska Republican, and Senator Marco Rubio, a Florida Republican, were briefed on potentially troubling elements of the takeover, according to a source familiar with the matter. Hankes cited a recent Forbes article questioning China’s approach to COVID-19 lockdowns, as well as the publication’s prior track record of reporting freely on China issues as evidence of the publication’s independence.īut the deal with Magnum Opus now faces heightened scrutiny, including from the US government. 'Forbes’ newsroom is and always will be fiercely independent of any type of coercion or influence, whether that be from outside parties, or internally from Forbes management,' said Hankes. In a statement to, Forbes Chief Communications Officer Bill Hankes strongly disputed that the deal would result in any undue Chinese influence over Forbes. 'This deal raises serious and grave concerns about Forbes, which is truly the mouthpiece of democracy and capitalism, and is effectively being taken over by the Chinese,' a senior source at Forbes told. ![]() The Forbes takeover, first announced last August, has largely flown under the radar, but as it nears consummation, alarm bells are ringing in the Forbes newsroom and at the highest levels of government. The Chinese government fund has since disposed of its shares, it disclosed just last week.įorbes, the 'business bible' famous for its lists such as the 30 Under 30 and rankings of the richest Americans, booked revenue of $165 million in the first nine months of 2021, and averaged 59 million monthly US visitors to its website for the year. In a deal valued at $620 million, Forbes is set to go public by the end of February through a merger with Hong Kong-based Magnum Opus Acquisition, a special purpose acquisition company, or SPAC, that was initially formed with financial backing from the Chinese government.Ĭhina's sovereign wealth fund, China Investment Corporation, owned a 5.8 percent stake of the shell company when it went public last March. The initial involvement of China’s sovereign wealth fund in a deal to take over Forbes is raising concerns about the potential for censorship at the venerable US business news outlet.
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