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Binance, led by the world’s richest crypto billionaire

Binance, the world’s largest cryptocurrency exchange, is making a $200 million strategic investment in Forbes, the 104-year-old magazine and digital publisher.

According to people familiar with the transaction, the funds will assist Forbes in carrying out its plan to merge with a publicly-traded particular purpose acquisition company, or SPAC, in the first quarter.

Investors have become wary of SPAC deals in general and media deals in particular in recent months, as the stock market has retreated. Binance will replace half of the $400 million in institutional investor commitments announced by Forbes in August. According to the sources, this would make Binance one of the top two largest owners of Forbes, listed on the New York Stock Exchange under the ticker FRBS. They also stated that the crypto company would receive two directors out of a total of nine board seats.

The investment by Binance

The move demonstrates the crypto sector’s growing real-world influence, which has seen skyrocketing valuations and minted a new class of billionaires amid global interest in digital assets. While crypto firms have gone public, had their names emblazoned on sports stadiums, and flooded the airwaves with celebrity endorsements, this is the sector’s first significant investment in a traditional U.S. media property.

Forbes was founded more than a century ago by the grandfather of the magazine’s current editor-in-chief and two-time presidential candidate, Steve Forbes. Forbes sold a 95 percent stake to Hong Kong-based Integrated Whale Media in 2014 for $475 million.

Forbes, best known for its flagship magazine and a digital publishing model based on contributors, has worked to diversify its revenue through licensing agreements, e-commerce, and direct-to-consumer efforts. According to the company, it’s content and events reach 150 million people.

Forbes is also well-known for its annual list of the world’s wealthiest business magnates.

Binance founder and CEO Changpeng Zhao recently entered this category. The figure, a conservative estimate that excludes his crypto holdings, quickly makes him the industry’s most prosperous entrepreneur.

The company approached Forbes, considering various options, including an outright sale, after identifying three media and content platforms for potential investment.

Insiders in the cryptocurrency industry predict a flood of transactions this year as companies deploy massive sums of money raised in recent fundraising rounds.

Binance was established in China in 2017 but did not have a physical headquarters. It is in the process of selecting a location for one as a nod to regulators.

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