Binance takes a $200 million stake in Forbes

Binance is making a $200 million strategic investment in Forbes ahead of the publication’s plan to go public through a special purpose acquisition company in the first quarter of 2022. The world’s largest crypto exchange is branching out with a remarkable media investment.

Binance will invest $200 million in Forbes, an anonymous source told CNBC News Thursday.

This investment will help Forbes as it transitions to a publicly-traded entity through a special purpose acquisition company (SPAC), according to people with knowledge of the deal.

When the deal is finalized sometime in the first quarter of 2022, Forbes will start trading on the New York Stock Exchange under the ticker FRBS, sources revealed. The deal will make Binance one of the two biggest investors in Forbes and grant the crypto exchange two director positions on the media company’s board of executives.

The investment by Binance, founded 5 years ago, indicates that CEO Changpeng Zhao believes content generation will be a growth area for Web3 development. Web3 refers to a more decentralized version of the internet that uses the blockchain, which also underpins cryptocurrencies and NFTs.

“This is the first step into a marketplace that has really high potential when it comes to adoption of Web3-based tools,” said a person with knowledge of Binance’s strategy. “Our industry has seen a ton of growth, and we think you’d have to be a fool to not position yourself in those sectors that are ripe for infrastructure investment.”

While Binance has frequently made investments inside the crypto space, most recently contributing $40 million to the Oasis ecosystem fund, its stake in Forbes marks the exchange’s first investment in a traditional media company. Binance’s first undertaking as an investor will replace half of the $400 million in commitments from institutional investors announced by Forbes in August.

Binance’s investment in Forbes highlights the growing influence of the crypto sector in the traditional financial world. Moreover, the deal will likely set a precedent for other major players in the crypto industry to form partnerships with influential companies outside of the crypto sphere.

Crypto insiders say they expect a deluge of deals this year as companies deploy the enormous sums of money raised in recent fundraising rounds.

Founded in China in 2017, Binance has no physical headquarters. However, the CEO and founder of Binance recently revealed he bought his first home in Dubai, a city he describes as “very pro-crypto.” He also confirmed that Binance has decided on a location for its global headquarters. New property in Dubai may have hinted where Binance’s headquarters would be.