In a move that not even my telephone psychic could have predicted, Forbes has decided to sell a majority stake in Forbes Media to a group of international investors with the goal of accelerating growth and becoming a global leader.
“Today, we announced that we have reached an agreement to sell a majority interest in Forbes Media to a group of international investors. This is obviously a momentous occasion for the Forbes family and the team here at Forbes. But, it represents an opportunity for extraordinary advances for us that would have been inconceivable just a few short years ago,” stated Steve Forbes.
As an entrepreneur and CEO of a business that has raised capital, I can see why Forbes made the move, which is especially difficult for a 97-year-old company. A very smart (and wealthy) entrepreneur once told me that he would rather have a minority stake in something huge than a majority stake in a smaller business. For example, would you rather own 20 percent of a business worth $2 billion or 100 percent of a business worth $200 million? Exactly.
The transaction will enable Forbes Media to maintain and speed up the editorial momentum of recent years, and will also rapidly expand the Forbes brand into new, promising areas such as education, financial services, real estate and technology license agreements.
According to Mr. Forbes, “The investor group will provide capital, as well as financial and operational expertise, and intends to leverage its international relationships to strategically enlarge Forbes Media’s reach on a global scale. In partnership with IWM, Forbes Media will build on the wide and rapidly expanding appeal of the Forbes brand that today reaches approximately 75 million people worldwide with its business message through print, digital, TV, conferences, research, social and mobile each month.”
He went on to add: “While today marks a fundamental turning point in this 97-year-old company founded by my grandfather, it should be seen as an opportunity to continue and strengthen our mission. I look forward to staying actively involved as Chairman of the Board and Editor-in-Chief and to working with my colleagues and our new partners to take us to new peaks of success.”
I wish Forbes Media the best of luck in the future and I think the decision to sell a majority stake of the iconic business was an ingenious move that will surely pay off in the long run.
For more information, check out this interesting article that was posted today by Steve Forbes himself: The Next Frontier for Forbes