Binance Commits $200M To Buy Stake in Forbes
Binance, the largest crypto exchange, has confirmed taking a $200M stake in Forbes. The funds from Binance will help the news company to carry on with its plans to merge with a publicly traded special purpose acquisition company (SPAC). Binance also plans to replace half of the $400M from other institutions’ commitments in Forbes to make it one of the two largest owners of Forbes.
Binance to Invest $200M in Forbes
Binance, the most successful crypto exchange, has confirmed plans to buy a $200M stake in Forbes. Binance’s investment in the 104-year-old news company is part of a strategic plan to control an even bigger stake.
The fund acquired from Binance will aid Forbes in its pursuit of a merger with a SPAC in Q1 of 2022. Per inside sources, Binance also plans to replace the $400M in institutional commitments announced by Forbes last August.
By replacing the amount, Binance will now be among the two largest owners of the media company. Forbes also seeks to be listed on New York Stock Exchange using the ticker name FRBS. After completion of the deals, Binance will be awarded two directors seats at a nine-director boardroom of the restructured Forbes.
Binance’s Long Term Plans Regarding the Forbes Investment
Binance founder and CEO Changpeng Zhao, CZ, believes that content creation will be a key area for Web 3.0. Web 3.0 is a more decentralized internet iteration that relies on blockchain technology while underpinning cryptos and NFTs.
Per an inside source with knowledge of Binance’s strategic plan, investing in media is the first step as the industry has a high potential in Web 3.0. The cryptocurrency industry has also seen a very high growth rate, and it would be unwise not to occupy positions with the highest potential.
Binance approached Forbes after talking to three other media companies. At the time, Forbes was also contemplating an outright sale and other possible deals. The current deal between the two companies will help them complement each other.
Crypto Adoption Increases Among Institutions.
Binance is among several companies planning to carry out large business deals connected to cryptocurrency this year. Crypto insiders expect to witness even more crypto deals than last year as institutions deploy money collected during recent funding rounds.
Yesterday, crypto.news reported that the value of crypto M&a deals skyrocketed by 4,846% in 2021 alone. Institutions were at the center of the deals, with all of the top ten largest deals being valued above $1 B each. In 2020, no institution had a crypto-related deal worth over $1B, which shows that the industry is growing quickly.
The news also reflected on digital payments, NFTs, and the metaverse as the key projects that attracted large institutional adoption. These projects are a part of Web 3.0, which is still in the development phase. Therefore, more crypto adoption is projected to happen within the next few years.
However, there are no guarantees that any current project will survive as the world evolves to adopt decentralized internet. Therefore, always DYOR on the crypto space to remain updated.
