(Reuters) – Enterprise journal Forbes and on-line ticketing firm SeatGeek mentioned on Wednesday they might terminate offers with blank-check companies, because the SPAC growth fizzles out and such transactions draw better regulatory scrutiny.

Forbes’ writer had entered right into a $630 million deal final yr with former Point72 government Jonathan Lin-led particular objective acquisition firm (SPAC) Magnum Opus to assist it construct consumer-focused merchandise and reduce its reliance on media income.

Chief Govt Officer Mike Federle on Wednesday mentioned Forbes’ digital transformation had delivered double-digit development in income and core earnings over the previous yr, which “considerably outperformed the monetary targets offered initially of the SPAC transaction final yr”.

SeatGeek mentioned it had terminated its $1.35 billion SPAC cope with RedBall Acquisition Corp as a consequence of “volatility within the public markets”.

“Count on extra (terminated SPAC offers) to come back … This isn’t the atmosphere for dumb or overpriced offers that make no sense. That was 2021,” mentioned Thomas Hayes, managing member at Nice Hill Capital Llc in New York

SPAC offers had been among the many hottest funding traits through the pandemic as early-stage corporations seemed to go public with out the regulatory scrutiny of a conventional itemizing.

Nonetheless, the speedy improve within the variety of offers has drawn the eye of the Securities and Alternate Fee, which has proposed new guidelines and extra disclosures from the deal sponsors.

Hostile market circumstances and poor share efficiency of corporations equivalent to Seize in addition to media outlet BuzzFeed, which has misplaced practically a 3rd of its worth since going public earlier this yr, have additionally induced the blank-check frenzy to fizzle out.