Amid the crypto market turmoil, CoinDesk, an online cryptocurrency news site, has attracted potential buyers to take over the media outlet from Digital Currency Group, Semafor reported on Wednesday, citing sources familiar with the matter.
One of the approaches proposed a $300 million purchase price, but it was deemed too low by some. CoinDesk generated approximately $50 million in annual revenue through traditional online advertising and its popular Consensus conference.
According to semafor, some investors are trying to acquire CoinDesk, a cryptocurrency news website owned by DCG, at a price of 300 million US dollars. CoinDesk has an annual income of about 50 million US dollars through activities and advertising. https://t.co/3TMGNF513z
— Wu Blockchain (@WuBlockchain) November 30, 2022
Digital Currency Group (DCG) owns CoinDesk as well as crypto investment bank Genesis Global Trading, crypto asset manager Grayscale, and crypto mining firm Foundry.
On November 2, CoinDesk reported that FTX’s sister company Alameda Research might be insolvent, precipitating Sam Bankman- Fried’s FTX to collapse and to cause an industry-wide spillover effect.
Less than a week later, the company declared bankruptcy, and Bankman-Fried resigned as CEO, facing allegations that he used customer funds to cover Alameda’s losses.
Since FTX‘s failure, investors have been concerned about a crypto contagion affecting the entire industry. Lenders have stopped lending, withdrawals have become more difficult and unregulated, and the value of little-understood tokens has plummeted. The two most popular cryptocurrencies, Bitcoin and Ether, have continued their year-long decline.
DCG founder Barry Silbert stated last week that the company has approximately US$2 billion in debts but is on track to generate $800 million in revenue this year on the back of only $25 million in primary capital raised since inception. Silbert’s net worth is estimated to be $2 billion by Forbes.
Silbert has attempted to reassure his own investors, including Alphabet’s CapitalG and Western Union, that DCG is secure.
Semafor notes that there is no formal sales process in place for CoinDesk, but it has drawn interest from a diverse group of potential buyers, including private equity firms, family offices, rival publications such as Blockworks, and hedge funds that seek distressed assets, according to the people.
CoinDesk is one of many companies that may face an uncertain future as a result of the market situation, as CoinDesk and its peers provide free content and fund their businesses through advertising and events.
