Binance takes over $200M stakes in Forbes

Binance takes over $200M stakes in Forbes

Investment
February 11, 2022 by Editor's Desk
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Binance, one of the world’s largest cryptocurrency corporations, will take a $200 million investment in Forbes in a considerable leap for the 105-year-old brand. Forbes, known for its billionaire rankings, said the purchase would help it become a leader in providing information about digital assets such as Bitcoin. Though they eventually dropped the case, Binance had
Binance takes over $200M stakes in Forbes To Become Information Leader

Binance, one of the world’s largest cryptocurrency corporations, will take a $200 million investment in Forbes in a considerable leap for the 105-year-old brand. Forbes, known for its billionaire rankings, said the purchase would help it become a leader in providing information about digital assets such as Bitcoin.

Though they eventually dropped the case, Binance had sued Forbes for slander in 2020. News of the transaction raised concerns among media observers about conflicts of interest. Analysts warned that crypto assets are particularly subject to celebrity and media hype manipulation, prompting regulatory warnings globally.

Binance founder Changpeng ‘CZ’ Zhao, while announcing the investment, recognized that as Web 3 and blockchain technologies advance, media would be a critical component in fostering consumer comprehension and education. Following this, he clarified his remarks on Twitter, defending Forbes’ editorial independence, describing it as “sacrosanct.” He also told CNBC that his company was looking to invest in other traditional companies to accelerate the adoption of Blockchain, a transaction technology employing a shared, decentralized ledger. 

Binance has been scrutinized by regulators globally, prominently in the USA and the UK. It will provide technical guidance to Forbes, allowing the business journal to maximize its brand and start efforts to convert readers to paying subscribers. It stated that the transaction would not alter its coverage regions, but it would allow its existing digital assets team and a few other beats to grow over time. Forbes spokesperson Bill Hankes emphasized the fierce independence of the media brand while reaffirming that the integrity of journalism is the leading brand asset of Forbes.

The transaction takes place at a critical juncture in the cryptocurrency sector. Companies have been investing in sports stadium sponsorships, advertising, and political lobbying to grow their influence and shape expected regulation, while currencies such as Bitcoin are seeing their values surge.

Henri Arslanian, a partner at PwC who advises crypto companies frequently, commented that many crypto companies are expanding into other areas, including media, to expand their reach. He said that concerns would raise over the partnership of Binance and Forbes despite both sides vowing independence.

Forbes, family-owned for decades and founded in 1917, has a reputation for chronicling business titans. Forbes said in August that it would list on the New York Stock Exchange through a merger with Magnum Opus, a group that purchases firms wanting to go public. 

The corporations anticipated that the agreement, which values Forbes at $630 million, would close in the following weeks. It includes a $400 million investment from other partners, including Binance, responsible for half the amount. 

Forbes Chief Executive Mark Federle said that Forbes commits to demystifying the complexity of blockchain technologies and developing digital assets by offering helpful knowledge. Forbes is a resource for people researching digital assets and now would have at its disposal the resources, network, and experience of Binance. With forty-five licensed local editions spanning seventy-six countries, Forbes has a global audience of more than 150 million people.