One of the largest exchanges for cryptocurrencies buys in one of the most traditional American magazines at three figures in a million, making Binance one of the largest shareholders of Forbes. The more than 100-year-old magazine was last seeking $400 million in funding from institutional investors to prepare for a merger with a Special Purpose Acquisition Company (SPAC).
SPACs are empty corporate shells that are listed on the stock exchange. In this way, a previously privately managed company can be brought to the trading platforms in an alternative way to the classic IPO. With Binance investing half of the required amount, the crypto exchange will become one of the two largest owners of Forbes, according to a report by US broadcaster CNBC appears. This also means that two of the nine positions on the board of directors can be filled by the company, which allows some influence on the strategic development of the traditional magazine.
It is as yet unclear what drives Binance operators to get into the publishing business of a classic press product. Because it is probably a very solid investment, it will not deliver the speculative returns that the crypto scene has been used to lately. However, this could also be the point: it is quite questionable how far the bubble around cryptocurrencies can be extended. After all, the last large amounts of money have been acquired with NFTs, which only have completely fictitious values. Investing capital in proven, low-risk companies can be seen as a good move. The main question is whether the high participation rate will also have consequences for the magazine’s reporting.
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Good to know about that. Crypto currency will take over the economy in future.