Change of program – Last February, we told you about this investment of Binance in the American media group Forbes. A few months later, nothing is going well and the agreement is cancelled. Forbes backtracks and revises its strategy. Binance is considering “ always some options“. Story of a failed IPO.
Forbes backtracks on its stock market project
Since the month of February and the declarations of the Forbes Global Media Holdings Inc., the projects were clear. The group wanted to be listed on the New York Stock Exchange through a PSPC whose Binance would be the main shareholder. What is a SPAC? Good question.
“A SPAC [société d’acquisition à vocation spéciale] is a vehicle without its own operational activity, listed on the stock exchange to raise funds in order to finance – at least – a merger-acquisition operation with an unlisted company not yet identified when the SPAC was listed. »
(definition from the Autorité des marchés financiers – Source: www.amf-france.org/ )
Forbes had to create a new entity with Magnum Opus Acquisition Limited the time of the IPO process. It is a relatively classic strategy in international finance and Binance put 200 millions on the table on an overall budget of 400. But finally, everything collapsed.
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Binance still interested in investing in the American media group
The American media echoed the outcome of this case on June 1st. The news group announced that “ its shareholders ultimately terminated the business combination agreement”. Why ? The good results of the group this year would be the beginning of an explanation, but it is rather the structure of the financial package that would pose a problem.
SPACs are in the sights of the DRY (the financial policeman of the American stock exchange) which would accentuate its controls and its checks on this structural type. The group would ultimately have preferred to change its strategy under pressure from shareholders. Thing is, with the deal lapsed, Binance was called upon to speak out. And the response from an anonymous group executive is clear:
“We continue to review all possible options and look forward to working with Forbes’ management team in the months ahead. »
Obviously Binance and its charismatic CEO Changpeng Zhao don’t seem determined to abandon their media projects. Here is what he had to say about it lately: The crypto market is maturing, and we know that media is an essential part of building consumer understanding and education. We look forward to bolstering Forbes’ digital initiatives“. So it’s a case to follow…
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