• by Tony Silber , Staff Writer, February 14, 2022

Last week's news that the 105-year-old business-information brand Forbes is getting a $200 million investment from Binance, one of the world’s largest cryptocurrency and blockchain infrastructure providers, touched off a fair amount of media speculation.

Forbes and its special-purpose acquisition company partner, Magnum Opus Acquisition, had earlier announced plans to pursue a merger, expected to close in the first quarter, through which Forbes would become a publicly traded company on the New York Stock Exchange. Going public would enable the iconic Forbes to continue its digital transformation, using technology and data-driven insights to engage audiences and strengthen recurring revenue streams, the company said.

In the Binance investment, the cryptocurrency exchange operator will assume $200 million in subscription agreements, representing half of the $400 million in private-investment-in-public-equity, or PIPE, commitments that were previously announced.

The Wall Street Journal reported that the investment by Binance reflects an effort by Binance owner Changpeng Zhao to help the publication make the transition to “Web3.” The term refers to a new iteration of the internet defined by decentralization and blockchain economics.

And Axios said the Binance investment really serves as a hedge against SPAC investors bailing out, as happened with BuzzFeed in December, and has become common in SPAC IPOs.

The New York Post said the Binance investment demonstrates the influence of the nascent crypto sector amid growing global interest in digital currencies.

Forbes CEO Mike Federle, echoing that take, described the Binance investment as accessing the experience, network, and resources of the world’s leading crypto exchange. “Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets,” Federle said. “Forbes, already a resource for people interested in the emerging world of digital assets, can become a true leader in the field with their help.”

For his part, Zhao agreed. “As Web3 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,” he said. “We look forward to bolstering Forbes’ digital initiatives, as they evolve into a next-level investment insights platform.”

With the new investment, Binance becomes the second-largest owner in Forbes, behind the Hong Kong-based investment firm Integrated Whale Media, which purchased a 95% stake in Forbes in 2014. As part of the transaction, Binance Chief Communications Officer Patrick Hillmann and Head of Binance Labs Bill Chin will join the Forbes board of directors upon the close of the business-combination transaction.