Binance, the biggest cryptocurrency exchange platform in the world, has made a $200 million strategic investment in Forbes magazine.
According to a CNBC report on Thursday, quoting sources with intimate knowledge of the matter, the investment will be allocated to help the business magazine and digital publisher complete its anticipated merger with a publicly listed special purpose acquisition company (SPAC) in Q1 of 2022.
Investors have become wary of SPAC and media mergers especially when the stock market has declined. According to persons familiar with the merger, who wanted to remain anonymous as the agreement is still being negotiated, Binance would make up for 50% of the $400 million in institutional investor pledges.
This would make Binance one of the two biggest shareholders in Forbes, which will soon be listed under the ticker symbol FRBS in the New York Stock Exchange (NYSE). Moreover, the sources confirmed that out of the 9 seats on the board of directors, 2 of them will be dedicated to crypto.
The crypto sector’s real-world influence is growing, thanks to rising cryptocurrency acceptance and the creation of a new generation of billionaires as a consequence of enhanced global attention in crypto assets.
The likes of Coinbase and other crypto enterprises are already publicly traded, sponsoring sports clubs, and branding their stadiums with their logos, apart from being showcased in public transport and banners. However, this investment marks the industry’s first substantial investment in a traditional U.S. media entity.
Changpeng Zhao, the founder and CEO of Binance, has openly stated that he believes content production will be a thriving sector for Web3 expansion especially since the content and activities of Forbes are viewed by 150 million individuals all over the world.