The Binance-backed deal for popular news outlet Forbes to go public via SPAC is reportedly canceled.
According to a New York Times report, as some recent SPACs have underperformed, the cancellation could be attributed to dwindling interest in the once-popular investment instrument. The final verdict might come as early as this week.
In February, Binance acquired a $200 million stake in Forbes, which would’ve valued the media outlet at $630 million via a merger with Hong Kong-based SPAC Magnum Opus Acquisition.
As per an Axios report, the Forbes deal had until the end of May 31st to file papers with the SEC to conclude its merger but there was no extension filed yesterday.
So far this year, Magnum Opus has filed two deadline extensions. The document was filed many days before the deadline in both situations.
Integrated Whale Media (IWM), a Hong Kong-based investment firm, bought 95% stake in Forbes from the Forbes family in 2014 making it the biggest shareholder of course.
If the SPAC transaction was completed, IWM and to a lesser extent, the Forbes family, which still controls 5% of the company, would have received a $400 million settlement.
As Forbes’ SPAC failed, the outlet may attempt to sell itself to a private buyer. Forbes had been in talks with private bidders for years before the SPAC acquisition, including blockchain software firm Block.one and investment firm GSV Ventures.
A Binance spokesperson noted “we’re continuing to review all possible options and look forward to working with the leadership team at Forbes in the months ahead.”