Chinese tycoon 475 million purchase Forbes

Recently, Hong Kong businessman Ren Dezhang joined hands with Taiwan's Asustek Computer founder Vivian Hsieh to do one thing: Buy Forbes Media, the parent company of Forbes magazine, which has a history of nearly a hundred years and ranks the world's rich every year.

According to foreign media reports, Forbes from 8 months ago openly looking for buyers, an informed source said Forbes expected valuation of 400 million -5 million. The valuation of 4.75 billion U.S. dollars in this transaction is considered as ideal.

Forbes Media announced on the 18th that the Forbes family will still have a small stake after the majority stake in the consortium to Xie Weiqi is involved and the family's third-generation chief executive, Steve Forbes, will continue to chair Forbes Media and Chief editor. In a statement, Steve Forbes said partners respect Forbes magazine's brand and value philosophy and will remain committed to the independence of business coverage in the future.

Hong Kong consortium accounting for more than 60%

Public information shows that the buyer IntegratedWhileMediaInvestment Inc. claims to be a "newly formed Hong Kong International Investment Group," which is owned and managed by Ren Dezhang, founder of Asset Management (Asia) Limited Asustek Computer co-founder Xie Weqi.

Steve Forbes said in an interview on the 18th that new investors controlled the "majority" stake in Forbes Media. When asked what the "majority" stake is, Forbes replied: "To me, most are over 51%."

According to a public report, Forbes valued at more than $ 475 million in deals involving more than $ 300 million in the deal, which the consortium will ultimately hold about 63% of Forbes Media. The Forbes family will sell about 18% of the shares through this transaction, will receive about 85 million U.S. dollars in revenue.

Last year, Time Inc. tried to buy Forbes Media for $ 175 million; Forbes Media tried to sell for a higher price this year, but potential buyers, including Fosun Holdings, were not interested. This is related to the Forbes business performance in recent years.

In 2013, Forbes magazine's ad revenue fell 5% to $ 260 million, and advertising pages were down 10%. According to a document sent to potential acquirers last year, Forbes Media has said it expects revenue in 2013 to be $ 145 million and profits of $ 21 million. Forbes did not comment on this data.

Expansion to digital media

It is understood that Forbes Media Group's assets include "Forbes", "Forbes Asia" and "Forbes Living" three magazines and Forbes.com.

Currently, Forbes.com has 28.5 million users in the United States. The industry generally believes that the acquirer interest in Forbes Media mainly lies in its huge traffic, low operating cost network platform, and the "Forbes" brand; and more than 400 million US dollars valuation reflects the Forbes future growth in emerging markets Optimistic about the potential.

In 2006, Elivation Partners acquired a 45% stake in Forbes Media for $ 265 million. However, due to the downturn in commercial and financial magazines such as Forbes, the company has reduced its investment by nearly 90% and will completely withdraw from the deal.

Forbes said Future Forbes business is shifting to a global media, branding and technology company that currently reaches 75 million users each month through its print, digital, television and forum services. Currently Forbes.com has been transformed from a traditional portal news portal into a communications distribution platform. Forbes currently has 24 sub-stations around the world. In addition, through the forum, real estate titles, financial services, technology licensing agreement to further expand its brand.

Rendezhang said in a press release that his group will invest in the Forbes brand, history, family involvement and management team. Steve Forbes will remain chairman and chief executive of the group, while CEO Mike Perris will continue to lead the group's management team in handling the group's affairs.

"Given the tremendous growth in digital media over the past decade, Forbes Media's future plans include more programs for the expansion of the Internet and social media," said Ren Dezhang.