Forbes is expected to go public via merger with the special purpose acquisition company Magnum Opus Acquisition Ltd (NYSE:OPA) during the first quarter.
The world's largest cryptocurrency exchange, Binance, is making a $200-million strategic investment in Forbes ahead of its public debut, according to a CNBC report.
What To Know: Binance will replace half of the $400 million in commitments from institutional investors previously announced by Forbes, according to the report, which cited people with knowledge of the deal who declined to be identified before the transaction is announced.
See Also: Could Forbes Go Private Instead Of A SPAC Deal? Here's What The Latest Report Says
The Binance investment will make the crypto exchange one of the two largest owners of Forbes. Binance will also reportedly have two directors on the board out of nine total board seats.
"This is the first step into a marketplace that has really high potential when it comes to adoption of Web 3.0 based tools," said a person with knowledge of Binance’s strategy, according to CNBC.
"Our industry has seen a ton of growth and we think you’d have to be a fool to not position yourself in those sectors that are ripe for infrastructure investment."
The SPAC deal is expected to be valued at an implied pro forma enterprise value of $630 million. Upon closing of the transaction, Forbes will be listed on the New York Stock Exchange and trade under the ticker "FRBS."
OPA Price Action: OPA was up 0.3% premarket Thursday at $10.
Photo: satheeshsankaran from Pixabay.
