Cryptocurrency giant Binance announced on Thursday that it has invested no less than $200 million in Forbes, a 104-year-old publisher. The deal is part of a larger effort by Forbes to become a publicly traded company. As part of the transaction, Binance Chief Communications Officer Patrick Hillmann and Binance Head of Labs Bill Chin will join the nine-person Forbes Board of Directors this quarter.
Changpeng Zhao, Founder and CEO of Binance, said they hope to support Forbes’ digital initiatives “as they evolve into a next-level investment insights platform.” “As Web 3 and blockchain technologies advance and the cryptocurrency market matures, we know that media is a critical component in building widespread consumer understanding and education,” the executive said.
Forbes previously announced that it was pursuing a business combination with special purpose acquisition firm Magnum Opus, which would allow it to go public and trade on the New York Stock Exchange under the ticker symbol ” FRBS.” The combination is expected to close in the first quarter of 2022, and Forbes said going public would allow it to “further capitalize on its successful digital transformation, using technology and data-driven insights to build audiences.” more deeply engaged, and associated high-quality, recurring revenue streams.”
Helping Forbes get listed on the stock market
“Forbes is committed to demystifying the complexities and providing actionable insights into blockchain technologies and all emerging digital assets,” said Forbes CEO Mike Federle. “With Binance’s investment in Forbes, we now have the experience, network and resources of the world’s leading cryptocurrency exchange and one of the world’s most successful blockchain innovators. Forbes, who is already a resource for people interested in the emerging world of digital assets, can become a true leader in this field with their help.”
Binance’s investment will be through the blockchain platform’s “support of subscription contracts representing $200 million in commitments to the $400 million public equity private investment that was previously announced. alongside news about Forbes’ deal with Magnum Opus.” “With Binance assuming existing PIPE commitments, the overall size of PIPE will remain at $400 million, and Binance’s investment will be on substantially the same terms as existing PIPE investors,” the two companies explained.
“Transactions with Magnum Opus and Binance should help Forbes maximize its brand and business value and use its technology stack and proprietary analytics to convert readers into long-term engaged platform customers, including through memberships and recurring subscriptions to premium content and highly targeted product offerings.”
Formerly very fresh relationships
Relations have not always been good between Binance and Forbes. In 2020, the cryptocurrency platform indeed sued publication following an article reporting that the company created “an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously take advantage of crypto investors in the United States. .” The news outlet’s reporters had obtained what they called the “Tai Chi document,” which explained to senior Binance executives how the company planned to circumvent U.S. regulators.
Binance finally dropped the lawsuits last year. Its CEO noted on Twitter that he plans to respect Forbes’ editorial independence.
“Forbes editorial independence is and always will be sacrosanct. The strength of the Forbes brand and our investment depends on this continued independence. We are a blockchain company and our investment in Forbes is to help them build an infrastructure Web3 in the coming years,” he said. “Like many fast-growing innovative companies, Binance is used to answering for its actions in front of the media. This is a necessary reality when you are the leader of a disruptive industry.”
Source: ZDNet.com