CNBC announced that Binance, the world’s largest cryptocurrency exchange, is investing $200 million in Forbes, the 104-year-old magazine and digital publisher, in its latest report.
According to sources familiar with the matter, the funds will be used to assist Forbes in completing its plan to merge with a publicly traded special purpose acquisition company, or SPAC, in the first quarter.
In recent months, investors have been wary about SPAC purchases in general and media deals in particular due to the more significant stock market downturn. According to the persons who declined to be identified before the transaction was disclosed, Binance will replace half of the $400 million in institutional investment commitments announced by Forbes in August.
According to the sources, this would make Binance one of the top two largest shareholders in Forbes, which will be listed on the New York Stock Exchange under the symbol FRBS. Two directors will be appointed to the crypto company’s board of directors, out of a total of nine.
CZ Binance made some clarifications on Twitter
Ever after the announcement, CZ mentioned that he was receiving some questions in his dm. In his tweet thread, he wrote, “Forbes editorial independence is and will always be sacrosanct. “The strength of the Forbes brand and our investment depends on that continued independence.” “We’re a blockchain company, and our investment in Forbes is to help them build Web3 infrastructure in the coming years.” He also added that “like many fast-growing, innovative companies, Binance is used to media scrutiny. That’s a necessary reality when you are the leader of a disruptive industry.”
As they seek to expand their reach, many crypto companies are expanding into other areas, including media, according to Henri Arslanian, a partner at PwC who regularly advises crypto companies.
He remarked on Twitter, “Binance buying part of Forbes is like McDonald’s buying part of Yelp or Marriott buying part of Trip Advisor.” “Even if there isn’t a direct conflict of interest, I believe the perception will persist,” he told the BBC afterward.
The behemoth company’s collaboration with crypto platforms will pave a more extensive road for widespread crypto adoption.