Binance to Become One of the Largest Forbes Owners by Acquiring a $200 Million Stake

Forbes, the 104-year-old American magazine and digital publisher, which is preparing to go public by the end of the quarter, has announced the $200 million strategic investment made by Binance, the world’s largest cryptocurrency exchange by trade volume.

Forbes to Educate the Public on Blockchain

As part of the deal, Binance will take on an advisory role at Forbes in regards to its digital assets and Web 3.0 strategy. In addition to this, Binance will become one of the biggest part-owners of Forbes.

According to Mike Federle, CEO at Forbes, Binance gives the American magazine the necessary experience, network, and resources to continue “providing helpful information about blockchain technologies and all emerging digital assets.”

Forbes explains that:

“The transactions with Magnum Opus and Binance are expected to help Forbes maximize its brand and enterprise values and use its proprietary technology stack and analytics to convert readers into long-term, engaged customers of the platform.”

Patrick Hillmann, CCO of Binance, and Bill Chin, Head of Binance Labs, will take seats at the Forbes Board of Directors when the transaction is complete.

Forbes Prepares to Go Public

According to Forbes, the $200 million investment from Binance represents part of its $400 million private investment in public equity (PIPE), and its plans to become a publicly-traded company.

The $200 million from Binance will replace half of the initial $400 million in commitments from investors previously announced by Forbes and SPAC Magnum Opus Acquisition Limited.

By going public, Forbes will merge with Magnum Opus. When the move is finalized, Forbes will become listed on the New York Stock Exchange under the ticker FRBS.

On the Flipside

• The tie-up between Binance and Forbes has sparked criticism, with PwC crypto leader, Henri Arslanian, suggesting that there may be a conflict of interests at play. 

Why You Should Care

Binance becoming one of the two largest owners of Forbes shows how big the crypto sector is becoming, and its increasing influence on the real world.