Today, special purpose acquisition company (SPAC) Magnum Opus (NYSE:OPA) is generating more attention. With the SPAC boom officially behind us, OPA stock is one of a growing swath of SPACs that are currently trading below their $10 initial public offering (IPO) price. However, today this stock is inching back toward the $10 level following some intriguing news.
Today, it was announced that Forbes intends to go public in a reverse merger with Magnum Opus. Indeed, this deal is one of two media deals that have grabbed investor attention today. The other is the Axel Springer/Politico deal that was just recently announced.
Media companies are increasingly looking to raise capital and/or consolidate to build capacity to digitize their offerings. Why? Well, with print media continuing to suffer, digital media is the future many traditional players are looking to break into. Accordingly, the problem is finding a means to fund what can be a costly transition.
Given the interest around these deals today, let’s dive into a few things investors may want to know.
What Investors Need to Know About OPA Stock
- Magnum Opus was founded by Jonathan Lin, a prominent former executive at Point72.
- Forbes has taken equity capital in the past. Indeed, the last equity raise saw the company valued at $475 million in 2014, when Integrated Whale Media Investments bought a controlling stake in the company.
- This SPAC deal will likely generate $600 million in gross proceeds for Forbes.
- Accordingly, this deal includes a private investment in public equity (PIPE) investment of $400 million.
- Given recent redemption issues with SPAC deals, the timing of this merger has been called into question.
- However, should the deal go through as planned, Forbes is expected to net $145 million in cash to fund its growth expansion plans.
- The combined entity will list on the NYSE under the ticker “FRBS” upon closing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.