According to sources at Blockworks, it has been reported that Binance Capital is looking to acquire CoinDesk by leveraging the platform of CoinMarketCap.
Representatives from CoinMarketCap, acting on behalf of Binance Capital, have reached out to the CoinDesk news site to initiate talks about a potential acquisition.
The parent company of Binance has appointed CoinMarketCap as their official authorized representative to oversee and finalize the media acquisition agreement.
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According to a source familiar with the matter, Binance Capital was in talks to acquire CoinDesk in February.
However, discussions were abruptly halted due to concerns that if Binance were to buy the publication, the entire team of reporters would resign in protest.
Consequently, the world’s largest cryptocurrency exchange began exploring other options to potentially seal the deal.
Meanwhile, Binance CEO Changpeng Zhao took to Twitter to confirm that a direct acquisition of CoinDesk was not on the horizon due to what he described as a geographical mismatch.
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Binance has been the owner of the CoinMarketCap crypto statistics website since 2020, but the exchange is now making an effort to emphasize that CoinMarketCap operates as a separate and independent legal entity, with no direct ties to Binance.
Meanwhile, Digital Currency Group (DCG), which owns the news portal CoinDesk, has valued the publication at between $200 million and $300 million, but Blockworks has suggested that DCG’s expectations may be more modest, with a potential valuation of $75 million.
CoinDesk was acquired by DCG for a mere $500,000 in 2016. According to The Wall Street Journal, CoinDesk’s management has enlisted the services of Lazard, a consulting firm that specializes in mergers, sales, restructuring, and business strategy.