Crypto exchange Binance will acquire a $200 million stake in Forbes ahead of its IPO through a SPAC company.
Binance's investment will be half the amount that Forbes planned to raise from institutional investors before entering the initial public offering.
Forbes announced back in the summer plans to merge with SPAC Magnum Opus Acquisition Limited to enter the market. As a result of the merger, the company planned to reach a $630 million valuation. The combined firms will continue to be led by the current management team and retain the Forbes name. Following the closing of the transaction, Forbes will list its shares on the New York Stock Exchange under the ticker symbol "FRBS." The deal is planned to be closed by the end of spring. The publication noted in a statement:
The transactions with Magnum Opus and Binance will help us maximize the value of our brand and enterprise.
With the new investment, Binance will become the second largest owner in Forbes after Integrated Whale Media (IWM), a Chinese investment firm that acquired 95% of Forbes shares from the Forbes family in 2014.
There will be two representatives of the exchange on the Forbes board of directors. However, the crypto company does not plan to influence the editorial policy of the media holding. For the platform, this is primarily an investment in the media industry, which influences the development and adoption of innovative technologies. The cryptocurrency exchange plans to provide advice and assistance on digital initiatives and technology, according to statements.
Forbes said it will also use its funds to “convert readers into regular, engaged users of the platform, including through memberships and recurring subscriptions to premium content and targeted product offerings.”
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