Binance-backed deal for Forbes to go public is canceled

In February of this year was reported that cryptocurrency exchange Binance had made a strategic investment in the business magazine Forbes.

At the time, it was reported that the amount invested was US$ 200 million.

With this investment, the exchange would have a stake in the magazine as well as its digital publisher. In return, the funds would help Forbes execute its merger with a public takeover company (SPAC).

SPACs are organizations that help companies go public without having to carry out an IPO (Initial Public Offering). It was with a SPAC that Coinbase listed its shares on the exchange in April 2021, for example.

However, Forbes’ initial plan will not go ahead.

Forbes gives up on SPAC

According to a Tuesday New York Times report, Forbes will no longer follow through on its plan to go public through a SPAC.

The merger would be with Hong Kong-based SPAC Magnum Opus Acquisition. As a result, it would lead Forbes to a valuation of US$ 630 million.

At the time of Binance’s investment announcement, the exchange’s CEO Changpeng Zhao, the CZ, highlighted:

“As Web 3 and blockchain technology advance along with the cryptocurrency market, we know that the media is an essential element in building widespread consumer understanding and education. We look forward to reinforcing Forbes’ digital initiatives. After all, they evolve into a first-tier investment insights platform.”

Binance Didn’t Give Up On The Forbes Deal

Sources familiar with the matter told the paper the decision could be announced later this week. The New York Times attributed the decision to falling interest in the investment vehicle. This is because several recent SPACs have not performed well.

In addition, regulators – including US Securities and Exchange Commission (SEC) Chairman Gary Gensler – have increased scrutiny of SPACs. As a result, the shares of many companies that went public through such companies plummeted.

But Binance appears not to have given up on the deal. That’s because after the news broke, a spokesperson for the digital asset exchange said the company continues to “review all possible options.”

Additionally, he reported that Binance looks forward to “working with the Forbes leadership team in the coming months.”