Binance, one of the world's largest cryptocurrency and blockchain infrastructure provider, is making a $200m investment in business publisher Forbes less than two years after it sued the iconic US-headquartered brand for defamation.
Forbes and Magnum Opus Acquisition, a publicly traded special purpose acquisition company, said in a statement on 10 Febrary that Binance had made a $200m strategic investment.
Forbes and Magnum Opus earlier announced plans to pursue a business combination, expected to close Q1 of 2022, through which Forbes would become a publicly traded company on the New York Stock Exchange.
Going public would enable Forbes to further capitalize on its successful digital transformation, it said, using technology and data-driven insights to create more deeply engaged audiences, and associated high-quality and recurring revenue streams.
Binance's strategic investment will be through Binance's assumption of subscription agreements representing $200m of commitments in the $400m private investment in public equity that was previously announced along with Forbes' intention to go public via a business combination with Magnum Opus.
Forbes said the deal would "maximize its brand and enterprise values and use its proprietary technology stack and analytics to convert readers into long-term, engaged customers of the platform, including through memberships and recurring subscriptions to premium content and highly targeted product offerings".
Mike Federle, CEO, Forbes, said: "Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets.
"With Binance's investment in Forbes, we now have the experience, network and resources of the world's leading crypto exchange and one of the world's most successful blockchain innovators. 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."
Changpeng ‘CZ' Zhao, Founder and CEO, Binance, said: "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. We look forward to bolstering Forbes' Digital initiatives, as they evolve into a next level investment insights platform."
A Binance spokesperson said Forbes's editorial independence would remain "sacrosanct and entirely independent from Binance" after the deal.
Binance sued Forbes and two of its writers in November 2020 after the publication of a story that claimed Binance "conceived of an elaborate corporate structure designed to intentionally deceive regulators".
The cryptocurrency exchange called the story "false, misleading and highly defamatory" and claimed it had cost the business millions of dollars. The lawsuit was dropped by Binance in February last year.
Forbes, which published its first issue in 1917, is renowned for its billionaires list, whose constituents include the Binance chief executive and founder, Changpeng Zhao, whose wealth is estimated at $1.9bn by the magazine.
Two senior Binance executives - the chief communications officer, Patrick Hillmann, and Bill Chin, the head of its venture capital arm - will join the Forbes board of directors on the closing of the deal.
