Binance's $200 million war investment, century-old Forbes advances into Web3

Author | Qin Xiaofeng

Editor | Hao Fangzhou

Produced | Odaily

Editor | Hao FangzhouForbesProduced | Odaily

Recently, the American business media

Forbes

Media (Forbes) announced that it has obtained a US$200 million strategic investment from Binance, the world's largest cryptocurrency trading platform.

With this round of investment, Binance has become one of Forbes’ two largest shareholders and will appoint two directors to Forbes’ board of directors (nine seats in total) — Patrick Hillmann, Binance Chief Communications Officer, and Binance Investments (Binance Labs) Principal Bill Chin will join Forbes' board of directors.

However, this investment case still caused a lot of controversy. "Buying the media" and "interfering with the independence of the news" have become the excuses for some "melon eaters" to attack Binance, and some even assert that "Forbes has become the mouthpiece of Binance."

In this regard, Binance CEO Changpeng Zhao said that the main purpose of the acquisition is to help Forbes enter the Web3 era with the help of blockchain and encryption technology; after the acquisition is completed, Binance will not affect the independence of Forbes’ content; in the future, Binance will also Help some traditional industries enter the Web3 and blockchain fields through investment.

secondary title

1. Active transformation, Forbes embraces Web3A century ago, Scotsman B.C. Forbes founded the first "Forbes" magazine, which opened a legend of an era.

As a business magazine, "Forbes" is published every two weeks, mainly focusing on finance, industry, investment, technology, communication, law and other content. However, the magazine is most well-known for its rankings of various industries, such as "Forbes Global Rich List", "Forbes World's Top 100 Celebrities List" and dozens of other lists.

"Forbes" in the paper media era has gradually grown into a media giant with strong influence in the world. However, with the changes in technology, the influence and income of print media have gradually declined. Forbes has begun to carry out digital transformation and strive to achieve income diversification.

"Today, the Web3 wave with blockchain technology as the core is rising around the world, and Forbes is transforming again to meet the needs of the times.

For example, Forbes has released the "Forbes Blockchain 50" list for three consecutive years; in addition, it also publishes articles on blockchain, encrypted assets, DeFi, NFT and other topics, and makes relevant predictions. "As inflation increases, workers' salaries will decrease relatively, and Bitcoin will become an inflation-resistant alternative to the dollar."

However, Forbes' focus on encrypted finance and Web3 still cannot get rid of the "outsider" perspective. As the leading blockchain group, Binance undoubtedly has a strong voice in the field of encrypted finance. This investment can effectively enhance Forbes' professionalism in this field.

Forbes is dedicated to demystifying the complex, providing useful information on blockchain technology and all emerging digital assets, with Binance investing in Forbes, we now have the world's leading cryptocurrency exchange and the world's most successful Experience, network and resources of one of the world's leading blockchain innovators. Forbes has become a resource for those interested in the emerging world of digital assets, and with their help (Binance) can become a true leader in the space. said Forbes CEO Mike Federle.

"The main purpose of this acquisition is to help Forbes enter the Web3 era with the help of blockchain and encryption technology, and will focus on helping Forbes with Web3 attempts. For example, it can create an incentive through cryptocurrency or issue NFT to form an The business model of Read to Earn. Of course, this is just one possibility of many different attempts.” Binance CEO Changpeng Zhao said in an exclusive interview.

According to the official announcement, Binance’s $200 million strategic investment will advance Forbes’ business merger listing plan with Magnum Opus (NYSE: OPA), which is expected to end in the first quarter of 2022; through the merger, Forbes will become a listed company on the New York Stock Exchange. Company, the stock symbol is "FRBS".

"The deal with Magnum Opus and Binance is expected to help Forbes maximize its brand and corporate value, and going public will allow Forbes to undertake a more successful digital transformation and leverage a proprietary technology stack and analytics to convert readers into long-term engagement on the platform customers and create more recurring income.” Forbes commented on this round of financing.

secondary title

2. Binance’s Web3 ambitionAs the world's largest encryption platform, why did Binance choose to invest heavily in Forbes?Binance believes that the news, publishing and content industries have great prospects in terms of web3 strategy, platform construction, new products and services in the real world and metaverse. After identifying potential investments in three media and content platforms, Binance approached Forbes and ultimately chose the media giant, according to people familiar with the matter.

"In addition to Binance’s own strategic planning, more importantly, Forbes, as a representative of traditional media, has had a significant impact on encryption education in mainstream society. With the continuous iteration and mainstreaming of blockchain technology, the popularization of user awareness and education will become crucial.

The addition of Forbes is conducive to promoting user education and awareness development.Data shows that Forbes currently covers 150 million users in 77 countries/regions around the world, which will bring a large increase in users for the next round of development of encrypted finance, and Binance, the industry leader, will also benefit.

With the development of Web 3 and blockchain technology, and the maturity of the cryptocurrency market, we know that media is an important factor in building broad consumer understanding and education. We look forward to supporting Forbes' digital initiatives as they evolve into a new investment insights platform. " Zhao Changpeng said.

Of course, in addition to investing in Forbes, Binance will also invest in other traditional track projects. Changpeng Zhao said frankly,In the future, it will also help some traditional industries enter the Web3 and blockchain fields through investment.

Binance's partnership with Forbes is a win-win situation, but it still sparks controversy in the traditional and encrypted fields. "Buying the media" and "interfering with the independence of the news" have become the grounds for some "melon eaters" to attack Binance. Some even assert that "Forbes has become Binance's mouthpiece."

Regarding the dispute, Binance responded that,

"Forbes' editorial independence, now and in the future, is sacrosanct. This independence is the strength of the Forbes brand and an important reason for our investment." Changpeng Zhao responded, "Like many fast-growing Like most innovative companies, Binance is used to media scrutiny. It’s a necessary reality when you’re a leader in a disruptive industry.”

In fact, among the investors this time, Changpeng Zhao played a very small role. According to his personal Twitter statement, investment is mainly promoted by its venture capital institution Binance Labs; and in the future management of Forbes, Zhao Changpeng will not participate, but appoints Binance Chief Communications Officer Patrick Hillmann and Binance Labs head Bill Chin to join Forbes Board of Directors.

“Binance will not be involved in the day-to-day operations of Forbes. Forbes board members already have deep experience, and Binance hopes that the addition of Bill and Patrick will further enrich the team’s industry experience.”

secondary title

3. The wave of Web3 is sweeping the world