World’s Largest Crypto Exchanges Binance Invests $200 Million in Forbes
Key Takeaways:
- Binance, the world’s biggest crypto exchange has made a $200 million investment in digital and print publisher Forbes
- This development is a part of a larger deal to take Forbes public through a strategic merger with a SPAC
- One of the core objectives for Binance is to leverage Forbe’s humongous audience to create a buzz and build consumer understanding about cryptocurrency.
- Forbes is also making attempts to pin down digital and blockchain assets.
Forbes, one of the largest print and digital publishers in the world said that it has received a $200 million investment from Binance. At the moment, Binance is the world’s biggest cryptocurrency exchange.
This deal will help Forbes go public via a special purpose acquisition company (SPAC) merger. According to Forbes and SPAC company Magnum Opus, the deal is projected to close by the end of March.
SEE ALSO: Google Cloud is Looking to Hire a Team of Blockchain Experts to Grow its Business
Binance Invests in Forbes – Why does it matter?
The capital injected by Binance will replace more than half of the initial $400 million raised by institutional investors to help finance Forbe’s SPAC.
Over the past few months, SPAC redemptions and investor taking back their capital from SPAC before the merger has increased significantly. This is why that capital is not reliable.
More about Binance’s investment in Forbes
The $200 million investment will make Binance the second-largest owner in Forbes. At present, Integrated Whale Media (IWM), a Chinese investment firm will continue to remain Forbe’s largest owner.
As part of the deal, Binance executives Bill Chin and Patrick Hillman will join Forbes’s board of directors once the SPAC merger goes through.
SPAC firm Magnus Opus Acquisition Limited has not disclosed a date when shareholders will vote on the merger.
Although Binance and Magnus Opus could extend the date, Forbes expects the merger to be complete in the first quarter of 2022. This means that all the parties involved do not have enough time left to extend.
What does it mean for IWM?
The deal is structured in a way that Forbe’s current owners, the Forbes stakeholders, and IWM will receive a sum of $400 million from the second round of money once the SPAC merger is complete.
In many ways, this deal will help IWM exit from its investments from Forbes.
For quite some time. Forbes has been experimenting with blockchain technology. This is why the recent deal with Binance makes even more sense. Other software firms such as Block. one have also expressed interest in buying out Forbes at some point.
SEE ALSO: Software Giant Blackbaud Acquires Everfi for $750 Million
Feature Image Source: rawpixel.com
