According to sources with direct knowledge of the subject, a leading cryptocurrency CoinDesk, a news company and part of the Digital Currency Group (DCG) empire, became the target of acquisition by Binance Capital Management (BCM) in the past few weeks.
Binance Wants To Acquire CoinDesk Via CoinMarketCap
Registered in the British Virgin Islands, BCM is exploring ways to acquire the company through its CoinMarketCap subsidiary, a US company. These talks are said to be currently on hold.
CoinDesk CEO Kevin Worth confirmed in January that the company was for sale.
While initial estimates of CoinDesk’s market cap were up to $300 million, the latest source reported that the value of the potential deal is much lower, at $75 million.
Barry Silbert’s DCG company acquired Coindesk in 2016, nearly three years after its founding, for approximately $500,000. The company has become a leader in crypto news and events.
CoinDesk’s news of the Alameda balance sheet, which exposed the weaknesses in FTX’s finances, is widely regarded as the first domino in the collapse of Sam Bankman-Fried’s empire.
A source said last month that initial talks between CoinDesk and Binance broke down as a mass exodus of journalists from the news company is expected if Binance is the majority owner of the exchange.
A different source revealed that Binance is considering a buyout through a closed trust, but negotiations have “outdated” that idea in the past two weeks. However, they said that the talks were revived by Binance Capital Management and focused on using CoinMarketCap as a buying tool.
*Not investment advice.
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