Binance’s US$200 mn Forbes deal uncertain as investors pour cold water

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 Binance’s US$200 mn Forbes deal uncertain as investors pour cold water
Image source: © Shahurin | Megapixl.com
Highlights:
  • Binance's deal to invest US$200 million in Forbes went into limbo after the latter's SPAC plan collapsed.
  • Forbes' investors voted against its plans to go public.
  • Another deal Binance pledged to put money in, Musk's Twitter buyout, is also dragging.

Binance Holdings Ltd.’s US$2oo million deal with Forbes has become uncertain as the latter’s plan to go public via a SPAC has fallen apart, said the crypto exchange’s CEO Changpeng ‘CZ’ Zhao. The deal is ‘changing’, Zhao remarked.

During an interview with Bloomberg TV, Zhao maintained that his company is still keen on going ahead with the deal without divulging how the terms and conditions would change.

“It’s changed a little bit, but I believe that’s still in discussions,” Zhao said. Binance’s plan to invest in Forbes is an extension of the company's strategy to invest in brick-and-mortar media outlets.

Although it was a year ago that Forbes had planned to go public via a merger with blank-check firm Magnum Opus Acquisition Ltd., it announced on June 1 that the deal had been called off. Forbes stated that the agreement had been rescinded as investors voted against it.

Binance was supposed to invest the stipulated US$200 million as part of strategic investment, while taking two seats on the board. 

Also Read: Blackstone Products (BLKS) to go public via SPAC – know details

© Murmakova | Megapixl.com

Also Read: Better.com, CEO misled investors to ensure SPAC deal: Former executive

Binance promised US$500 mn for Musk’s Twitter deal

Binance has also pledged to invest around US$500 million in Elon Musk’s US$44 billion Twitter buyout deal.

The Twitter deal has gone through several ups and downs, with Musk vehemently criticizing the social media platform’s obscurities regarding the actual organic users. The Tesla CEO voiced his concerns over the rampant spam bot networks dominating Twitter.

Commenting on the Twitter deal, Zhao said, "I don't know what's happening there, but we're still hoping that'll come through." If the Twitter deal fructifies, Binance is still committed to paying the promised amount, and if it doesn't, then they are out of it, Zhao added.    

Now, whether the Forbes’ plan to go public materializes and whether Binance is still willing to invest in it is uncertain.

Bottom line:

Binance Holdings Ltd. is the world’s largest cryptocurrency exchange based on the daily crypto trading volume. Founded in 2017, Binance is registered in the Cayman Islands.

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