A group of lawmakers recently forwarded correspondence to Treasury Secretary Janet Yellen, noting they have concerns regarding the proposed acquisition of Forbes under an entity with Chinese Communist Party ties.
U.S. Sens. Bill Hagerty (R-TN), Tom Cotton (R-AR), Bill Cassidy (R-LA), and Ted Cruz (R-TX) penned the letter, citing Forbes Global Media Holdings (Forbes) detailing in August 2021, a proposed acquisition by Magnum Opus Acquisition Limited (Magnum Opus).
The lawmakers indicated Magnum Opus is a special purpose acquisition company (SPAC) controlled by the Chinese Communist Party.
“In your role as chair of the Committee on Foreign Investment in the United States (CFIUS), we urge you to investigate the circumstances and national security implications of this proposed acquisition,” the senators wrote. “China’s deliberately vague patchwork of intelligence, national security, and cybersecurity laws compel companies to support and cooperate with the government’s intelligence work. Not only is Magnum Opus domiciled within the jurisdiction of the Chinese Communist Party (CCP), but the seed money for Magnum Opus came directly from China’s sovereign wealth fund, the Chinese Investment Corporation (CIC).”
The senators maintain the CCP’s direction of Forbes’ editorial content, and business operations or access to Forbes’ financial and personal research could present a national security threat to the United States.
“As members of the Intelligence, Judiciary, Banking, and Finance Committees, we view proposed transactions like this one as a compelling reason for increased oversight of the CCP’s predatory economic behavior in American markets,” the senators wrote. “We urge you to take the necessary steps to thoroughly review the circumstances and potential consequences of this deal.”