World’s largest cryptocurrency exchange, Binance has invested $200 million in Forbes.
Gatekeepers News reports that people with knowledge of the deal said the funds would help the 104-year-old magazine and digital publisher, Forbes to execute its merger plans with a publicly-traded Special Purpose Acquisition Company, or SPAC.
Recently, investors have grown more skeptical of SPACs generally, and of media deals in particular. This is amid the broader stock market retrenchment.
In August, people familiar with the matter disclosed that Forbes announced that $400 million in institutional investment commitments would be replaced by Binance and some other investors. However, they declined to be identified until the deal is announced.
Having listed Forbes on the New York Stock Exchange under the ticker “FRBS” makes Binance one of the first two biggest owners of Forbes.
According to their announcement, a total of nine board seats will be allocated to the crypto company.
This move demonstrates that crypto has a real-world impact, as it has been a source of surging valuations and has minted billionaires amid the global interest in digital assets.
It is the first time a crypto company has invested in a traditional U.S. media property, while others have gone public, branded sports arenas, and flooded airwaves with celebrity endorsements.
Founder and Editor-in-Chief, Steve Forbes was a two-time presidential candidate whose grandfather founded Forbes more than a century ago. In 2014, at a valuation of $475 million, Forbes sold 95% of its stake to Integrated Whale Media.
Forbes, known for its flagship magazine and digital publishing model based on contributors, has taken steps to diversify its revenue through licensing deals, e-commerce, and direct-to-consumer efforts.
The company claims to reach 150 million people through its content and events.
Forbes is also known for its annual ranking of the world’s wealthiest businessmen.
Binance Founder and CEO, Changpeng Zhao recently entered this category. In January, Zhao was pegged by Bloomberg News at $96 billion in net worth. Aside his crypto holdings, this makes him the wealthiest entrepreneur in the blockchain industry.
