The deal to sell the American media holding company Forbes Media Group fell through, The Washington Post reports. The company was to be bought by a group of investors led by Luminar founder Austin Russell, 28, for $800 million. The publication cites the influence of a Russian or foreign party in the transaction as the reason for the failure.
As Forbes representative Bill Hanks told the publication, the current owner of the holding company, Integrated Whale Media, announced the termination of the sales agreement to a group of investors who “could not cope with the closure.” He did not provide any further comment.
According to WP sources familiar with the situation, the US Congress was interested in the details of the agreement. The Foreign Investment Committee was concerned about possible foreign involvement in the deal.
In early May, Austin Russell announced the purchase and announced that he would become the majority owner. He planned to take over 82% of the holding company.
According to the publication, Russell’s statement about plans to acquire the holding company caused confusion because he had no experience in the media industry. Also surprising was the potential value of the deal, which exceeded the combined value of Time, Fortune and The Washington Post.
According to WP, doubts about Russell’s connections with the owner of the Russian magazine Forbes, Magomed Musaev, could become an obstacle to the deal.
The publication refers to certain audio and video files in which Musaev allegedly confirmed his plans to buy Forbes global. And Russell, he says, is just the face of the deal.
Musaev himself told WP in October that rumors about his involvement are “absolute nonsense and a myth.”
Author:
Natalia Gormaleva
Source: RB
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