Binance plans to take a $200 million stake in US business media group Forbes

Cryptocurrency exchange Binance plans to take a $200 million stake in Forbes as the century-old US business magazine looks to go public via a blank check company.

Forbes has sought $400 million in additional capital via a private placement as part of its plans to go public via a tie-up with special purpose acquisition company Magnum Opus Acquisition Limited, a deal that is expected to value the business at $630 million.

Binance Capital Management's proposed investment through the private placement would mean two of the crypto exchange's top executives taking board seats at Forbes.

A Binance spokesperson said the exchange group will not be involved in Forbes' editorial operations. The companies said the deal would help Forbes boost its digital ambitions.

“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 most successful blockchain innovators in the world,” said Mike Federle, CEO of Forbes. “With their help, Forbes, already a resource for people interested in the emerging world of digital assets, can become a true leader in the field.”

The deal represents a major foray into mainstream media for a crypto firm. The US-based Digital Currency Group already owns CoinDesk, a well-known crypto specialty publication.

Founded more than a century ago by Bertie Charles Forbes and Walter Drey, Forbes published its first edition in 1917 and is known for tracking the world's richest people, including those who have made their money in recent years with the rise of cryptocurrencies.

The company closed a deal in August with Magnum Opus Acquisition, a Spac backed by private investment firm L2 Capital that is expected to raise $600 million in new investments.

Best known for its billionaires list, Forbes magazine has charted the rise of the ultra-rich in recent decades, often licensing its data from economists who study wealth inequality. In 2018, it began building a wealth database that ranks cryptocurrency billionaires and has also launched lists aimed at shining a spotlight on promising cryptocurrency startups.

Among the crypto billionaires Forbes estimates is Changpeng “CZ” Zhao, founder of Binance, who according to the magazine has a net worth of $1.9 billion and graced its cover in 2018.