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Binance, the world’s largest cryptocurrency exchange, has invested $200 million in Forbes, a 104-year-old magazine and digital publisher.
Sources said the funds would help Forbes execute its merger plans with a publicly-traded SPAC. In recent months, investors have grown cautious of SPACs in general and media deals in particular.
Binance and other investors will replace $400 million in institutional investment commitments, according to people familiar with the matter who asked to remain anonymous until the deal is announced.
Binance is one of the top two major owners of Forbes, with the ticker “FRBS” on the New York Stock Exchange. The crypto company will get nine board seats.
This move shows the real-world impact of crypto, which has risen in value and created billionaires due to global interest in digital assets. Other crypto companies have gone public, branded sports arenas, and flooded the airwaves with celebrity endorsements.
Steve Forbes, founder, and editor-in-chief, whose grandfather initially established Forbes more than a century ago. At a valuation of $475 million. Forbes sold 95% of its stake to Integrated Whale Media in 2014.
This year, Forbes plans to expand its revenue streams to include licensing deals, e-commerce, and direct-to-consumer efforts. In addition, it claims to reach 150 million people through content and events.
Forbes also publishes an annual list of the world’s wealthiest businessmen.
Changpeng Zhao, CEO of Binance, recently joined this category. Bloomberg News estimated Zhao’s net worth at $96 billion last month. This figure, which excludes his personal crypto holdings, easily makes him the industry’s richest entrepreneur.
Zhao believes content generation will be a growth area for Web 3.0 development, evidenced by Binance’s investment. Cryptocurrencies and non-fungible tokens (NFTs) are examples of Web 3.0.
By Abraham Aroloye
