Crypto Exchange Binance plans to invest $200 Million in Forbes

Crypto Exchange Binance plans to invest $200 Million in Forbes
Crypto Exchange Binance plans to invest $200 Million in Forbes

Binance, a major cryptocurrency exchange, will invest $200 million (approximately Rs. 1,510 crores) in Forbes, the media firm said on Thursday, as it prepares to go public through a special purpose acquisition company (SPAC).

Binance to Invest $200 Million in Forbes

Binance’s investment would cover half of the $400 million (approximately Rs. 3,015 crores) in private placement commitments already disclosed by Forbes and SPAC business Magnum Opus Acquisition Limited.

Forbes and Magnum Opus announced in a joint statement that the transaction is scheduled to finalize by the end of March.

Forbes said in August that it will go public through a SPAC in order to capitalize on its digital shift and seek more opportunities for development.

The agreements with Magnum Opus and Binance are designed to help Forbes maximize its brand and enterprise values, according to the firms.

Binance will assist Forbes with its digital asset and Web3 strategy, they added, alluding to an as-yet-unrealized version of the Internet in which blockchain-based “decentralized” apps and cryptocurrencies are extensively utilized.

SPACs are shell businesses that raise money in an IPO and place it in a trust with the intention of merging with a private firm and going public.

Binance withdrew a lawsuit against Forbes in February of last year. In 2020, it sued Forbes and two of its journalists for defamation in connection with an October report the magazine published on the exchange’s business structure.

According to the release, two top Binance employees, Chief Communications Officer Patrick Hillman and Bill Chin, the head of its venture capital arm, would join Forbes’ board of directors upon the transaction’s completion.

“I can assure you that Forbes’ editorial independence will remain sacrosanct and fully independent of Binance,” said Binance spokesperson Simon Matthews to Reuters.

On Thursday, Binance CEO Changpeng Zhao tweeted a CNBC article on the deal to his 5.1 million followers. He then reacted with a thumbs-up emoji to a post that said it was “important to construct the appropriate narrative discounting bogus news.”

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