Forbes, the 104-year-old American magazine and digital publisher, which is preparing to go public by the end of the quarter, has announced a $200 million strategic investment from Binance, the world’s largest cryptocurrency exchange by trade volume.
Forbes to Educate the Public on Blockchain
As part of the deal, Binance will take on the advisory role at Forbes on its digital assets and Web3 strategy. In addition, Binance will become one of the biggest owners of Forbes.
According to Mike Federle, CEO, Forbes, Binance gives the American magazine the experience, network, and resources to continue “providing helpful information about blockchain technologies and all emerging digital assets.”
Forbes explains that;
“The transactions with Magnum Opus and Binance are expected to help Forbes maximize its brand and enterprise values and use its proprietary technology stack and analytics to convert readers into long-term, engaged customers of the platform.”Patrick Hillmann, the CCO of Binance, and Bill Chin, the Head of Binance Labs, will take up seats at the Forbes Board of Directors when the transaction is complete.
Forbes Prepares to Go Public
According to Forbes, the $200 million Binance investment forms part of its $400 million private investment in public equity (PIPE) and its plans to become a publicly-traded company.
The $200 million from Binance will replace half of the initial $400 million in commitments from investors already announced by Forbes and SPAC Magnum Opus Acquisition Limited.
In going public, Forbes will merge with Magnum Opus. In addition, when the move has been completed, Forbes will list on the New York Stock Exchange under the ticker FRBS.
On the Flipside
- The tie-up between Binance and Forbes has sparked criticism, with PwC crypto leader, Henri Arslanian, suggesting that there may be a conflict of interests between the two
Why You Should Care
Binance becoming the biggest owner of Forbes shows the big the crypto sector is becoming and its increasing influence on the real world.
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