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Binance invests $200 million in Forbes

Binance is acquiring a $200 million stake in Forbes and is not shy about why it is doing so.

Binance, one of the world’s largest cryptocurrency and blockchain infrastructure providers, has invested $200 million in Forbes. This represents 50 percent of a private investment in public equity (PIPE) that Forbes is setting up as it goes public through a merger with a special purpose acquisition company or SPAC, known as Magnus Opus Acquisition Limited. Forbes will list on the New York Stock Exchange and trade under the FRBS ticker. The deal is expected to close in the first quarter of this year.

Forbes says going public will enable it “to further capitalize on its successful digital transformation, using technology and data-driven insights to create more deeply engaged audiences, and associated high-quality and recurring revenue streams.” The media house will enhance its “brand and enterprise values by using its proprietary technology stack and analytics to convert readers into long-term, engaged customers of the platform, including through memberships and recurring subscriptions to premium content and highly targeted product offerings.”

It is an interesting turn between the two companies as Binance sued the media outlet for defamation in 2020. The crypto powerhouse claimed to have suffered losses running into millions of dollars due to an article in which Forbes alleged that Binance was “designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States.”

However, Binance withdrew the lawsuit, and the article is still up. What will become of the report now that Binance is an investor remains to be seen. But it is safe to say negative stories about Binance or cryptocurrency, in general, will reduce in volume across the Forbes empire.

In Binance’s press release concerning the investment, the company didn’t attempt to sugarcoat things. The CEO of Binance, Chanpeng Zhao, just stopped short of saying the transaction was meant to buy influence. “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.”

Also, the timing of the investment coincides with the arrest of a Forbes contributor, Heather Morgan, who goes by Razzlekhan, aka the Crocodile of Wall Street. She has allegedly been laundering $3.6 billion with her husband. However, Zhao is not bothered by Morgan’s action, saying in an interview that a rogue Forbes writer did not change anything in the scheme of things.

Speaking on Binance investment, Forbes CEO, Mike Federle said, “Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets. With Binance’s investment in Forbes, we now have the experience, network, and resources of the world’s leading crypto exchange and one of the world’s most successful blockchain innovators. 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.”

As part of this transaction, Patrick Hillmann, Chief Communications Officer for Binance, and Bill Chin, Head of Binance Labs, the Venture Capital Arm and Incubator of Binance, will join the Forbes Board of Directors upon the successful closing of the business combination transaction, expected this quarter.

Written by HackerVibes

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