Binance, a major cryptocurrency exchange by trading volumes, will invest $200 million (£147.6m) in Forbes, the media company announced, as it prepares to go public via a Special Purpose Acquisition Company (SPAC).
- Binance’s strategic investment represents $200M in the $400M private investment in public equity (PIPE).
- This will help Forbes for content creation on digital assets and web3.
- It will also help Forbes to execute its plan to go public and maximize its brand reach.
Binance will assist Forbes with its digital asset and Web3 strategy, in which blockchain-based “decentralized” apps and cryptocurrencies are widely used.
“Forbes, already a resource for people interested in the emerging world of digital assets, can become a true leader in the field with their help,” said Mike Federle, CEO of Forbes in the announcement.
Forbes and Magnum Opus previously announced plans to go public on the New York Stock Exchange under the ticker symbol “FRBS” to build on its digital transition and pursue further chances for growth. The funds will help Forbes execute this plan.
Binance’s investment will replace half of the $400 million in private investment in public equity (PIPE).
The transactions with Magnum Opus and Binance are expected to help Forbes maximize its brand and enterprise values.
Forbes will also get two directors out of nine total board seats: Patrick Hillmann, Chief Communications Officer for Binance, and Bill Chin, Head of Binance Labs, the Venture Capital Arm, and Incubator of Binance.
“As Web 3 and blockchain technologies move forward and the crypto market comes of age we know that media is an essential element to build widespread consumer understanding and education. We look forward to bolstering Forbes’ Digital initiatives, as they evolve into a next-level investment insights platform,” said Changpeng ‘CZ’ Zhao, Founder and CEO, Binance.
The move demonstrates the crypto sector’s growing real-world influence and Binance seems to be at the forefront eyeing collaborations and investments to promote blockchain adoption. It recently partnered with a South Korean entertainment firm YG Entertainment to create NFT and gaming content on the exchange.