February 11, 2020
By Sharan Kaur Phillora
Binance, the world’s biggest cryptocurrency exchange, is making a $200 million strategic investment in Forbes, the 104-year-old magazine and digital publisher.
Here’s what we know:
- The funding from Binance is supposed to assist Forbes in completing a planned merger with a special purpose acquisition company (SPAC) in the first quarter of 2022, as stated in an interview with CNBC.
- Forbes announced in August 2021 that it had obtained commitments of $400 million from institutional investors. Binance reportedly is stepping in to fund half that amount, despite growing skepticism about SPAC deals, especially those involving media companies.
- With this deal, Binance will be one of the two largest owners of Forbes, with two out of nine board seats. Forbes plans to be listed on the New York Stock Exchange (NYSE) under the symbol FRBS.
- The SPAC that plans to merge with Forbes is Magnum Opus Acquisition Limited (OPA). Magnum Opus, based in Hong Kong, is sponsored by private investment firm L2.
- “With Binance assuming existing PIPE commitments, the overall size of the PIPE will remain at $400 million, and Binance’s investment will be according to substantially the same terms as the existing PIPE investors,” the announcement reads.
- Binance founder and CEO Changpeng Zhao, who prefers to be called simply “CZ,” has an estimated net worth of at least $96 billion, according to Bloomberg, making him the richest cryptocurrency entrepreneur.
- He emphasized the importance of supporting media in the crypto industry as part of the company’s commitment to boost consumer knowledge and adoption of crypto, stating:
- “As Web3 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.”
- Binance reports having an average daily volume of 2.0 billion transactions, or 1.4 million transactions per second.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.