- The Binance CEO said that they will not add CoinDesk to their media properties.
- The struggling CoinDesk owner is looking for a buyer fast.
- Binance has significant holdings in both digital and traditional media.
Crypto giant, Binance, has loosened its grip on crypto media, at least for now. Talks about acquiring crypto news site CoinDesk have collapsed, according to reports confirmed by the Binance CEO.
On Tuesday, the CEO of Binance Changpeng Zhao (CZ) Reports have clarified about Binance Capital Management’s talks with CoinDesk. According to CZ, Binance pulled out of the deal, as CoinDesk did not fit the exchange’s geographic coverage.
It is not “hung”. do not buy.
It might be a good job. But it is not suitable in our geographical coverage. 🙏
– Czechoslovakia 🔶 Binance (cz_binance) March 14, 2023
CoinDesk CEO Kevin Worth confirmed in January that the The outlet was for sale. Its owner, Digital Currency Group (DCG), which owns bankrupt lenders Genesis, is looking to raise capital quickly.
Preliminary estimates put the news site at more than $300 million. However, the actual purchase price will be much lower, Closer to $75 millionAccording to the sources.
Either price would pay a nice return on your investment in DCG, which acquired the news site in 2016 for $500,000. Since then, CoinDesk has been on the rise. The news site generated $50 million in revenue in 2022 from online advertising.
The potential acquisition came from Binance Capital Management (BCM), the investment arm of Binance. BCM is looking to invest in CoinDesk with its CoinMarketCap, one of the largest cryptocurrency price tracking websites.
Do you own Binance CoinMarketCap?
The transaction will not mean that Binance will control CoinDesk directly. Instead, CoinDesk will be part of CoinMarketCap, which is owned by Binance Capital Mgmt.
Binance.com does not own CoinMarketCap directly. According to a disclosure on their website, three are “No ownership relationshipbetween CoinMarketCap and Binance.com. However, the disclosure also indicates that BCM acquired CoinMarketCap in 2020.
Besides CoinMarketCap, Binance also owns DappRadar, a DeFi analytics platform based in China.
In February 2022, Binance announced the issuance of 200 million dollars to invest In Forbes magazine. At the time, Forbes planned to go public via a special purpose acquisition company (SPAC). The deal fell through after Forbes decided not to take it public after a series of underperforming SPAC mergers.
on the flip side
- Coindesk’s parent DCG suffered from Site reports on FTX. After CoinDesk reported on the exchange, Binance withdrew the funds, which led to the crash of FTX. The collapse of FTX eventually led to the collapse of the DCG property configuration.
- Previous reports indicated that DCG had buyers offering North $200 million for CoinDesk.
Why should you bother
When major players in the industry own news websites, there is always the possibility of a conflict of interest.
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