Binance, a cryptocurrency exchange, will invest $200 million in Forbes

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

Binance’s investment will replace half of the $400 million in private placement commitments already announced by Forbes and SPAC company Magnum Opus Acquisition Limited.

Forbes and Magnum Opus said in a joint statement that the transaction is expected to close by the end of March.
Forbes announced in August that it would go public through a SPAC in order to capitalize on its digital transition and pursue additional opportunities for growth.

The transactions with Magnum Opus and Binance are expected to help Forbes maximize its brand and enterprise values, according to the companies.

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

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

Binance dropped 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 story the magazine published about the exchange’s corporate structure.

According to the statement, two senior Binance executives, Chief Communications Officer Patrick Hillman and Bill Chin, the head of its venture capital arm, will join Forbes’ board of directors upon the transaction’s completion.

“I can confirm Forbes’ editorial independence will remain sacrosanct and completely independent of Binance,” Binance spokesperson Simon Matthews told Reuters.

Binance CEO Changpeng Zhao tweeted a CNBC story about the deal to his 5.1 million followers on Thursday. He later responded with a thumbs-up emoji to a post that stated, “need to set the right narrative discarding the fake news.”