Forbes Magazine (Photo : Getty Images)
A Chinese firm offers to buy Forbes through the acquisition of a controlling stake. HNA Group, a well-known acquisitive conglomerate, is “in talks” to secure control of the magazine’s publisher, according to two knowledgeable sources.
One of the sources said that the Integrated Whale Media Investments (IWM) is also communicating with another Chinese media firm and is surveying for more prospective buyers for most or all of its stakes. IWM is currently based in Hongkong and holds 95 percent stake in Forbes Media.
HNA has been talking with IWM for two weeks. The deal, according to the source, is no less than $400 million in value.
IWM and Forbes Media refused to give a comment, while HNA did not reply to a request for a statement.
The Forbes family founded the financial magazine a century ago. IWM bought family’s controlling stake in Forbes Media in 2014. According to a source knowledgeable about the transaction, the deal with IWM made the Forbes company worth $475 million.
HNA Group listed 353rd in the 2016 Fortune 500 with its assets worth more than $100 billion. Aviation and logistics were its traditional business but recently, the group has been splurging on acquisitions, expanding into the financial, media and cultural sectors.
Based on the records with China’s corporate register, the group’s financial arm, HNA Capital, acquired 80 percent stake in Beijing Lianban Caixun Cultural Media in late 2016. The media company runs the website of Caijing Magazine, a prominent financial publication. The amount of the deal was not made known to the public.
"Going forward, HNA will continue to scout for good-quality domestic and international media assets," said the second source.
"HNA wants to display publications owned or invested by it on its planes, in its hotels," the source added.
International media industry awaits whether the Chinese firm that offers to buy Forbes will be successful with its acquisition target.
