"Media is a critical element to build widespread consumer understanding and education," said Binance CEO.
Binance, the world's largest crypto exchange by trading activity, is investing strategically in the 104-year-old magazine Forbes to boost consumer knowledge on cryptocurrencies and blockchain.
Forbes and Magnum Opus Acquisition Limited, a publicly listed special purpose acquisition company (SPAC), stated on Thursday that Binance has decided to invest $200 million in the company.
Forbes earlier revealed plans to go public in August 2021 via a business merger with Magnum Opus, with the merger anticipated to finalize in the first quarter of 2022.
Binance's strategic investment will be made through the acceptance of subscription deals worth $200 million in the $400 million private investment in public equity (PIPE) that Forbes declared in conjunction with his plan to go public.
“With Binance assuming existing PIPE commitments, the overall size of the PIPE will remain at $400 million, and Binance’s investment will be according to substantially the same terms as the existing PIPE investors,” according to the statement.
Binance's chief communications officer Patrick Hillmann and Binance Labs head Bill Chin will take part in the Forbes board of directors as terms of the agreement.
“Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets,” he said.
Changpeng Zhao, the founder and CEO of Binance, highlighted the significance of media support in the crypto sector as part of the company's objective to increase consumer awareness and adoption of cryptocurrency, saying:
“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. We look forward to bolstering Forbes’ digital initiatives, as they evolve into a next-level investment insights platform.”
According to a Binance representative, their investment in Forbes "would be the first of this kind" in the media world, and that "Web2 had a profound impact on the media sector. We believe that Web3 may have an equally important role to play in the future of journalism and publishing.”
Binance seems to be effective in its goal to spread awareness about crypto and Bitcoin thus far. Binance purchased CoinMarketCap in April 2020, the most famous cryptocurrency website with 187 million visitors as of August 2021.In addition to market capitalization figures, the website offers news, upgrades, and current leading companies. In September 2020, the company launched CMC Alexandria, its own crypto education site.