Luminar CEO's deal to buy Forbes called off - memo (updated)

Luminar Technologies

21/11/2023 18:24

(Updates headline and first paragraph to reflect that Reuters
has seen the Forbes memo, adds background on Forbes in paragraph
5, bylines)
    By Dawn Chmielewski and Helen Coster
       Nov 21 (Reuters) - Forbes' parent company has called off
its acquisition by Luminar Technologies  LAZR.O  CEO Austin
Russell, as the billionaire could not come up with the
financing, an internal Forbes memo seen by Reuters on Tuesday
showed.
    Earlier this year, the automotive technology executive had
agreed to acquire 82% of Forbes in a deal valuing the business
news publisher at nearly $800 million, including the remaining
portion of the company owned by the Forbes family.
    Forbes Media CEO Mike Federle told staff the cancellation
will not affect day-to-day operations and that the company will
continue to "consider other opportunities," said the memo, which
was first reported by The Information.
    Luminar and Forbes did not immediately respond to requests
for comment.
    Forbes was valued at $475 million in 2014 when Integrated
Whale Media bought a majority stake in the company from the
Forbes family and investment group Elevation Partners. Chinese
conglomerate HNA Group made an unsuccessful bid to acquire a
majority stake in Forbes in 2017, Reuters reported at the time.
    Forbes, one of the oldest U.S. media outlets, publishes its
eponymous flagship magazine, which reaches 5 million readers.
Founded by B.C. Forbes in 1917, it has long championed
capitalism and entrepreneurship and is known for its annual list
of the world's wealthiest people, as well as its 30 Under 30
franchise.

 (Reporting by Dawn Chmielewski in Los Angeles, Helen Coster in
New York and Akash Sriram in Bengaluru; Editing by Maju Samuel
and Richard Chang)
 ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti;
+91-74116-87774;))