The investment by Binance, the world's biggest
cryptocurrency exchange by trading volumes, will replace half of the $400
million in private placement commitments already announced by Forbes and SPAC
company Magnum Opus Acquisition Limited.
The deal is expected to close by the end of March, Forbes,
and Magnum Opus said in a statement.
Forbes said in August that it would go public via a SPAC in
an attempt to build on its digital transition and pursue further chances for
growth.
"The transactions with Magnum Opus and Binance are
expected to help Forbes maximise its brand and enterprise values," the
companies said.
Binance will help advise Forbes on its digital asset and
Web3 strategy, they added, referring to a still-unrealised version of the
Internet where blockchain-based "decentralised" apps and
cryptocurrencies are widely used.
SPACs are shell companies that raise money in an initial
public offering (IPO) and put it in a trust for the purpose of merging with a
private company and taking it public.
In February last year, Binance dropped a lawsuit against
Forbes. It had in 2020 sued Forbes and two of its journalists for defamation
over an October story the magazine published regarding the exchange's corporate
structure.
Two senior Binance executives - Chief Communications Officer
Patrick Hillman and Bill Chin, the head of its venture capital arm - will join
Forbes's board of directors on the closing of the deal, the statement said.
"I can confirm Forbes's editorial independence will
remain sacrosanct, and entirely independent from Binance," Binance
spokesperson Simon Matthews told Reuters.
On Thursday, Binance CEO Changpeng Zhao tweeted a CNBC story
on the deal to his 5.1 million followers. He later posted a thumbs-up emoji in
reply to a post that said "need to set the right narrative discarding the
fake news". - Reuters
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