Senators Tom Cotton (R-AR) and Marco Rubio (R-FL) raised alarms today over a proposed acquisition of the American media outlet Forbes by entities closely tied to the Chinese and Russian governments.
In a joint letter to Treasury Secretary Janet Yellen, the senators expressed their grave concerns about the potential national security threats the acquisition might pose.
They emphasized, “The implications of allowing entities close to the Russian government and the CCP to own and operate an influential American media outlet are grave.”
According to the senators, Forbes is of particular significance as it “reportedly holds a significant market share among younger Americans, with tens of millions of monthly users.”
They added that this places Forbes in “a unique position to collect and store sensitive personal data on these populations and influence their opinions.”
The acquisition could also allow “foreign powers to use Forbes’ wide reach to influence voters during close elections.”
Furthermore, the senators cited recent articles from Forbes that might be at risk, stating that “This reporting would undoubtedly be censored if Forbes is acquired by entities closely affiliated with the CCP,” specifically referring to Forbes’ coverage of “the CCP’s influence over TikTok and participating in the ongoing genocide of the Uyghurs and other non-Han Chinese ethnic groups in Xinjiang.”
Elaborating on the past endeavors by foreign entities to acquire Forbes, the senators recounted, “Just last year, the CCP attempted to buy Forbes through Magnum Opus Acquisition Limited, a special-purpose acquisition company (SPAC). Fortunately, that effort was scuttled after the CCP’s involvement came to light.”
This time, Sun Group, an investment firm reported to have ties to both the Russian government and the CCP, alongside Magomed Musaev, a former Kremlin propagandist, are the leading forces behind the acquisition attempt.
The senators highlight a concerning pattern, stating that Sun Group is “reportedly attempting to present the buyout of Forbes as an American venture by employing U.S. surrogates.”
Austin Russell, a young entrepreneur with no media background, is allegedly at the forefront of this acquisition attempt.
Yet, suspicions arise from the claimed financial dynamics.
The senators pointed out that “Russell is masquerading as the lead buyer of Forbes, claiming to purchase 82% of the company with a mere $10 million.”
However, they also noted that “Sun Group alone reportedly investing up to $300 million, nearly 40% of the capital for Forbes.”
Adding to their concerns, they detailed the ties between Russell, Sun Group, and the PRC State Council, emphasizing that “If this acquisition moves forward, the CCP’s influence over Luminar, Russell, and Sun Group would translate into influence over Forbes.”
Based on the details provided, the senators concluded that “Foreign investors would control nearly 50% of the total capital involved in the Forbes acquisition and the ‘lead’ American buyer appears compromised by foreign influence.”
They stressed the seriousness of the situation, asserting that it’s evident “that the dangers of the proposed Forbes acquisition greatly exceed the acceptable level of risk.”
Calling to action, they urged the Treasury Secretary, “As such, we urge you to conduct a review of the proposed Forbes acquisition, without delay.”
It remains to be seen how the Department of Treasury and Secretary Yellen will respond to this urgent appeal.
