After reporting on financial and business changes for over a hundred years, the old financial media “Forbes” is finally going to land on the capital market with the help of capital, and innovate in the most cutting-edge Web3 direction. And Binance, the world’s largest crypto exchange, has become one of the biggest helpers.
Recently, Forbes announced that it has received a strategic investment of $200 million from Binance, which will prompt Forbes to go public in the first quarter of this year by merging with SPAC (special purpose acquisition company) company Magnum Opus Acquisition. Patrick Hillmann, Binance’s chief communications officer, and Bill Chin, head of its venture capital arm and incubator Binance Labs, will join Forbes’ board, taking two of the nine-member board.
One is Binance, which is the fastest growing in the new crypto world and currently holds the top spot, and the other is Forbes, which covers a century-old traditional business circle and old money business. Mainstreaming is accelerating.
New forces and old money join forces, Forbes accelerates the capital market process
In 1917, the 37-year-old financial reporter B.C. Forbes founded the business media “Forbes” named after him. Unlike other media that only provide and summarize commodity prices and business figures, Forbes has set its sights on commodities from the beginning. the entrepreneurs behind it. Adhering to the tenet of “Entrepreneurial Spirit, Wealth Creation Tool”, Forbes has become the first magazine in the United States to report purely business news. Today, Forbes has launched 46 authorized local editions in 77 countries, reaching more than 150 million people worldwide. Along with Fortune, Business Week and The Economist, it has become one of the four major magazines in the financial industry.
Among them, the “Ranking List” produced by Forbes attracts the attention of all walks of life around the world every year.Since its inception, Forbes has surveyed Wall Street bankers to estimate the 30 richest people in the United States and released the Forbes list for the first time. Subsequently, “Forbes” launched various lists such as “Global Billionaires List”, “State Heads List” and “Elite List under 30”, which has become a hot spot for political and business circles and young entrepreneurs every year. The annual change of the list has also become a trend indicator of economic development. It has witnessed the turbulent changes in the market. Many companies on the top 100 list in the early years have been eliminated and disappeared in technological and business innovation.
Figures in the crypto circle have become frequent visitors to the “Forbes” list over the years. In the 2019 Forbes Global Billionaires List, Changpeng Zhao, the founder of Binance, and Jihan Wu, the co-founder of Bitmain, have appeared on the list. In the following years, Changpeng Zhao’s ranking on the list accelerated. Binance, run by Changpeng Zhao, is an important infrastructure company in the cryptocurrency field. As an exchange, it handles the world’s largest transaction volume 7*24 hours a day, and the public chain network Binance Smart Chain they support has also become the most widely used. the underlying network.
The capital injection of wealth rookie Binance undoubtedly accelerated the process of Forbes seeking to be listed in the capital market.
In August last year, it was reported that Magnum Opus Acquisition would acquire Forbes at a valuation of US$600 million in order to achieve a listing, and said it would be completed as soon as the end of the year. In order to realize the transaction, Magnum Opus Acquisition has about $200 million in cash in its own trust account and another $400 million through private equity investment (PIPE). Binance’s investment has accounted for half of the target fundraising, and it will also become Forbes’ second largest shareholder.
After Binance entered the market, Forbes’ financing plan accelerated and is expected to complete the merger in the first quarter of this year and become a NYSE-listed company. The original Forbes shareholders hold a combined 22% stake in the new company, which will continue to be led by the current Forbes management team, including CEO Mike Federle Mike Federle, and will retain the Forbes name under the ticker symbol “FRBS”.
Forbes said that the financing funds will be used to promote Forbes to accelerate digital transformation. Forbes, who has always been insightful in business changes, sees the development potential of Web3 and the cryptocurrency market, and Binance is undoubtedly one of the best choices.
Digital Web3 Transformation of Traditional Media
In the prediction at the end of 2021, Forbes published a document predicting the impact of Web3 on the future of work, pointing out that Web3’s concept of collaboration, cooperation and reciprocity will attract a large number of young talents and give birth to a freelance economy. At the same time, Web3 brings a learn-to-earn model, Expand educational opportunities to anyone around the world while attracting new users.
Although Forbes has not disclosed its specific plans in the future of Web3, only mentioning that it includes premium content and highly targeted products through membership and regular subscriptions, but Forbes is determined to enter Web3 to explore how to deepen the connection between readers and content. Centennial Forbes has witnessed the changes in media formats and business innovations, and understands the importance of its own business changing over time.
From print publications to radio to television to the Internet, the media has experienced challenges and impacts brought by technological progress. In 2008, the online version of “Forbes” was launched. Subsequently, international expansion was also launched, launching the international edition of Forbes magazine “Forbes Global”, the Japanese edition of “Forbes”, and the Brazilian edition of “Forbes Brasil”. Clearly, Forbes has been digitally transforming, doubling down on its efforts to expand its franchises around the world, with live events like Elite Under 30, which have mostly moved to virtual during the coronavirus pandemic.
In fact, Steve Forbes, the son of the founder of Forbes, put forward some bold ideas for ushering in the new century in his book “The New Birth of Liberty” published in 1999, arguing that “the real source of wealth and capital is not material things, but It is the human heart, the human spirit, the human imagination, and our belief in the future.” After seeing the new opportunities that Web3 brings to the future and the challenges to traditional media, Forbes was moved.
Binance also responded in an interview with PANews, “This is a financial investment in the media industry. Web2 has had a profound impact on the media industry, and I believe that Web3 may play an equally important role in the future of journalism and publishing. We see There is a tremendous opportunity to help the news, publishing and content industries develop Web3 strategies, platforms, and new products and services—whether in the physical realm, the Metaverse, or beyond.”
And “Forbes” CEO Mike Federer said when publicizing the financing news that Forbes is committed to demystifying the complexity and providing useful information about blockchain technology and all emerging digital assets. “With Binance’s investment in Forbes, we now have the experience, network, and resources of the world’s leading crypto exchange and one of the world’s most successful blockchain innovators. Forbes is already the world’s leading source of insight into the emerging digital asset world. A resource for those who are interested, with their help, can become true leaders in the field.”
Not only Forbes’ own Web3 exploration, in Changpeng Zhao’s view, the investment in Forbes will play a role in building broad consumer understanding, awareness and education of cryptocurrencies and blockchain. Opportunities to build a broad consumer understanding, awareness and educational presence will be important to continue to develop and become mainstream.
Denies meddling in news operations and will always maintain media independence
As soon as the news of Binance’s investment in Forbes was announced, there were voices in the market who were concerned about the neutrality of Forbes’ media, or that Binance might manipulate content or use it to lobby the government. This speculation was quickly refuted by Binance officials, and Forbes’ editorial independence will remain sacrosanct and completely independent of Binance. Binance has no plans to participate in the day-to-day operations of Forbes, and the two Binance employees who join the board will bring additional expertise to Forbes.
At the same time, Binance also stated, “Although Binance and Changpeng Zhao will be included in the report, there will be no special treatment like Forbes reports on other leading global companies and their CEOs. And Binance will not let Forbes Lobbying the government, we welcome regulation. We believe that effective regulation will contribute to the popularization of encryption technology.”
In fact, Forbes has always ensured that the independent objectivity of the media is not influenced by outside investors. As early as 2014, Forbes sold most of its shares to a consortium in Hong Kong, but has continued to retain the original editorial team, and three generations of the Forbes family continue to hold shares in the company.
In fact, like many fast-growing innovative companies, Binance faces a lot of pressure from public opinion and has become accustomed to media scrutiny. As early as April 2020, after Binance completed its largest investment to date, the acquisition of the cryptocurrency market website CoinMarketCap, it faced public opinion about the neutrality of CoinMarketCap, and then Changpeng Zhao also responded personally, and it was later proved that CoinMarketCap has always maintained neutral operation.
Binance’s investment has accelerated since the fourth quarter of last year. According to PANews statistics based on public financing news, Binance Labs has focused on investing in blockchain games, NFTs, Metaverse, infrastructure and other fields since the fourth quarter of last year. Chain game projects invested in include GAMEE, Heroes of Mavia, StarSharks, BinaryX, Elfin Kingdom, and the game guild Cosmic Guild; NFT investment projects include StarryNift, NFT protocol Solv; Metaverse projects include Mobox, Highstreet; underlying facilities include centralized service agreements Automata Network, privacy computing network Oasis, liquidity network WOO Network, cross-chain protocol Multichain (formerly AnySwap), Web3 public network BBS Network, Web3 developer platform DoraHacks, Web3 music platform Melos Studio, decentralized image network Numbers Protocol, mutual Operational Protocol LayerZero.
For Binance, investment is not only the pursuit of financial returns, but also the construction of a future Web3 business landscape, with underlying facilities, superstructures, professional content creators and game makers, etc. Web3 is a collaborative story with many puzzle pieces, and Binance may say: WAGMI (We All Gonna Make It, we will all succeed).
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-the-conspiracy-behind-binances-200-million-trench-tossing-forbes/
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