Binance, the largest crypto trading exchange globally is investing $200 million in Forbes Global Media. The deal comes ahead of the magazine’s blank-check merger later this quarter, according to an announcement Thursday.
The deal will help the 104-year-old magazine continue on its merger plans with publicly-traded SPAC Magnum Opus. The merger is set to facilitate Forbes’ digital transformation through proprietary technology stack and analytics, among others. CNBC was first to report Thursday.
Following the deal, Binance has become one of the top two largest owners of Forbes. The cryptocurrency exchange will be able to secure two seats in the board of directors — out of nine board seats. The seats will go to Bill Chin, head of Binance Labs, the venture capital arm and incubator of the exchange; and Patrick Hillmann, chief communications officer for Binance.
The $200 million will replace half of the $400 million private investment in public equity or PIPE — that institutional investors pledged when Forbes announced the SPAC deal in August 2021.
The business news organization, which publishes Forbes magazine, is expected to raise approximately $600 million in gross proceeds.
“As Web 3 and blockchain technologies move forward and the crypto market comes of age we know that media is an essential element to build widespread consumer understanding and education,” Changpeng Zhao, founder and CEO of Binance, said in a statement.
The combined firms will continue to be led by the current management team and will retain the Forbes name. Upon the closing of the transaction, Forbes will list on the New York Stock Exchange under the ticker symbol “FRBS.”
Forbes said it will also use its funds to “convert readers into long-term, engaged users of the platform, including through memberships and recurring subscriptions to premium content and highly targeted product offerings.”