According to a Forbes release, leading cryptocurrency exchange Binance has made a $200 million strategic investment in the American business magazine Forbes and Magnum Opus Acquisition Limited.
The 104-year-old magazine and digital publisher had previously declared its intention to become a publicly-traded business on the New York Stock Exchange under the ticker symbol “FRBS” via Magnum Opus investment firm, a publicly-traded SPAC (special-purpose acquisition company). The collaboration agreement was supposed to be finalized in the first quarter of 2022.
Binance’s $200 million investment will replace half of the $400 million in institutional investor pledges revealed alongside the company’s plan to go public.
Binance will become one of Forbes’ top two largest shareholders as a result of the transaction, and it will also receive two board seats out of a total of nine.
At the conclusion of the transaction, Patrick Hillmann, Chief Communications Officer for Binance, and Bill Chin, Head of Binance Labs, the Venture Capital Arm and Incubator of Binance, will join Forbes’ board of directors.
According to Forbes CEO Mike Federle, the partnership will allow the magazine to benefit from Binance’s experience, network, and resources.
Forbes’ goal of delivering knowledge on blockchain technologies and all developing digital assets will also be advanced.
Binance’s founder and CEO, Changpeng Zhao (CZ), commented on the agreement, saying,
“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.”
Binance has upped the valuation of its user insurance fund to $1 billion.
The insurance fund, known as the Secure Asset Fund for Users (SAFU), was introduced in July 2018 as an in-house emergency insurance fund, with a 10% allocation of all trading fees going to users who have lost cash put on the platform due to a security breach.