• 17 July, 2024
News

Coindesk Acquisition Rumors: CZ Breaks Silence And Dismisses Blockworks’ Report

Changpeng Zhao, the CEO of Binance, has denied the recent Blockworks report claiming that Binance Capital Management (BCM) was attempting to acquire CoinDesk through its CoinMarketCap subsidiary. 

The report claimed that sources familiar with the matter have suggested that the actual acquisition price for CoinDesk may be closer to $75 million, compared to the initial market value estimates of $300 million.

Cardano founder Charles Hoskinson had earlier expressed an interest in acquiring CoinDesk. However, Binance, registered in the British Virgin Islands, has decided not to pursue the acquisition of the crypto news and events company due to geographic coverage concerns.

CoinDesk, a core component of Digital Currency Group (DCG) empire, has been up for sale since CEO Kevin Worth confirmed in January that they had contracted with financial advisory firm Lazard to explore various options to attract growth capital to the business. The company has been receiving numerous indications of interest since then.

Despite the fact that DCG had previously shown interest in selling CoinDesk in the wake of the bankruptcy protection case filed by its lending arm Genesis, the purchase discussions with BCM via CoinMarketCap have been put on hold for the time being, says Blockworks.

Barry Silbert’s DCG had acquired CoinDesk in 2016, three years after its launch, for a meager sum of around $500,000. Since then, CoinDesk has grown to become a leader in crypto news and events. Recently, its financial reporting on the Alameda balance sheet exposed frailties in FTX’s financial position, leading to the collapse of Sam Bankman-Fried’s empire.

CoinDesk’s two journalists, Ian Allison and Tracy Wang, have been awarded the prestigious George Polk Award for their financial reporting, adding to the company’s reputation in the crypto space.

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