The biggest crypto exchange in the world by trading volumes, Binance, is making a strategic investment in the 104-year old magazine Forbes to boost consumer understanding of cryptos and blockchain. The publicly-traded special purpose acquisition company (SPAC), Forbes and Magnum Opus Acquisition Limited, officially announced on February 10 securing a $200 million strategic investment from Binance.
In the past, Forbes announced plans to go public via a business combination with Magnum Opus in August 2021, with the deal projected to close in Q1 of 2022. Binance’s strategic investment will be via Binance’s assumption of subscription agreements that represent $200 million of commitments in the $400 million private investment in public equity (PIPE) that was announced along with Forbe’s intention to go public.
The announcement reads:
“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.”
As part of that deal, Binance’s chief communications officer Patrick Hillmann and the head of Binance Labs Bill Chin will join the Forbes board of directors. Based on a statement by the Forbes CEO Mike Federle, the investment from Binance will enable the company to get the:
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“Experience, network and resources of the world’s leading crypto exchange and one of the world’s most successful blockchain innovators. Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets.”
Binance CEO Endorses Forbes Investment
Binance founder and CEO Changpeng Zhao insisted on the importance of supporting media in the cryptocurrency sector as part of the firm’s commitment to enhance consumer knowledge and adoption of crypto, saying:
“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.”
A Binance spokesperson told reporters that their investment in Forbes:
“Would be the first investment of this kind” in the media industry, adding: “Web2 had a profound impact on the media sector. We believe that Web3 may have an equally important role to play in the future of journalism and publishing.”
Binance has been succeeding in its mission to promote knowledge about cryptocurrency and Bitcoin so far. In April 2020, Binance bought CoinMarketCap, the most popular crypto site with over 187 million visits as of August 2021.
Besides offering market capitalization charts, the site provides news, updates, and current market leaders. The company subsequently launched its crypto education portal, called CMC Alexandria, in September 2020.