The Bullish cryptocurrency exchange, associated with the EOS and Block.one project, has completed a deal to purchase CoinDesk, a publication specializing in the crypto industry.
“Bullish will immediately invest capital in several of CoinDesk’s most exciting growth initiatives that will support the launch of new services, events and products. “We also want to express our unwavering support for CoinDesk’s commitment to journalistic independence,” the statement said.
Led by ex-president NYSE Tom Farley Bullish acquired 100% of the media from the Digital Currency Group (DCG) holding company. Financial terms were not disclosed.
According to the press release, CoinDesk will operate as an independent subsidiary of the crypto exchange. There are also plans to form an editorial committee chaired by former Wall Street Journal editor-in-chief Matt Murray. CoinDesk’s current management team will remain unchanged.
DCG founder Barry Silbert said he is “looking forward to seeing Bullish take CoinDesk to the next level.”
In January 2016, DCG announced the acquisition of CoinDesk. However, in the summer of 2022, it became known about the financial problems of another subsidiary of the holding, Genesis Global Capital. The group’s landing business needed support after the bankruptcy of the cryptocurrency hedge fund Three Arrows Capital.
In November, the OTC platform froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demands” from clients following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.
Against this background, WSJ sources reported DCG’s plans to sell CoinDesk with a valuation of $125 million, in part or in full. At the time, the firm’s CEO Kevin Worth said that over the past few months it had received “numerous signals of interest” from potential buyers. The upper limit of offers was allegedly $200 million.
In particular, the creator of the Chinese cryptocurrency publication MarsBit, Wang Feng, and the founder of Cardano, Charles Hoskinson, announced their possible participation in the transaction.
In July, journalists wrote that a group of investors was in the final stages of negotiations to purchase CoinDesk. A month later, the publication cut 45% of its editorial staff, or about 20 people.
Bullish launched in November 2021. Block.one invested $10 billion in the platform. The exchange was also supported by Thiel Capital and Peter Thiel’s Founders, Galaxy Digital, Nomura, billionaire Alan Howard and others.
Let us remind you that in July 2022, Bullish fired almost 30 employees (~10% of the staff). A few months later, the company terminated its reverse merger deal with SPAC Far Peak Acquisition – it previously planned to enter the NYSE in this way.
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