Binance to invest $200 million in U.S. media firm Forbes

Binance to invest $200 million in U.S. media firm Forbes

On Thursday, Forbes announced that it will invest $200 million in a cryptocurrency exchange called Binance, as it prepares to go public via a special purpose acquisition company (SPAC). Half of the $400 million in private placement commitments originally announced by Forbes and SPAC business Magnum Opus Acquisition Limited will be replaced by the investment by Binance, the world’s largest cryptocurrency exchange by trading volumes (OPA.N). According to Forbes and Magnum Opus, the acquisition is scheduled to finalize by the end of March. As part of its digital transformation, Forbes announced in August that it would go public via a Special Purpose Acquisition (SPAC) in order to pursue new opportunities for development. According to the companies, “the deals with Magnum Opus and Binance are expected to assist Forbes in maximizing its brand and enterprise values.” Binance will also assist Forbes in developing its digital asset and “Web3” strategy, referring to a future version of the internet that uses blockchain-based “decentralized” apps and cryptocurrencies. SPACs are shell businesses that raise money through an IPO and deposit it in a trust for the aim of combining with a private firm and bringing it to market as a public corporation. Binance settled a dispute with Forbes in February of last year. It has filed a defamation lawsuit against Forbes and two of its journalists in 2020 for publishing an October piece about the exchange’s corporate structure. According to the release, two senior Binance officials will join Forbes’ board of directors on the closure of the purchase, Chief Communications Officer Patrick Hillman and Bill Chin, the head of the company’s venture capital unit. “I can ensure Forbes’ editorial independence will remain sacrosanct, and completely independent from Binance,” said Simon Matthews, a representative for Binance. Changpeng Zhao, the CEO of Binance, sent a CNBC item about the purchase to his 5.1 million followers on Thursday. In response to a post that said “need to build the proper narrative dismissing the fake news,” he subsequently responded with a thumbs-up emoji.

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