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Coindesk Media Channel Under DCG, Received Multiple Repurchase Intents Bid Could Be $300M

Foxy - Coincu
2022-11-30 03:41
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Currently CoinDesk, a cryptocurrency news website under the Digital Currency Group (DCG), is receiving acquisition intent. As previously updated, Coindesk was the first to reveal Alameda Research’s unusual balance sheet and led to FTX’s death spiral.
But one thing is saying that the collapse of FTX sent the whole market into a state of crisis and it is the parent company of this news site, DCG, which is in a difficult situation and is looking for a way to raise capital from the investors.
Digital Currency Group CEO Barry Silbert has tried to reassure his investors, including Alphabet’s CapitalG and Western Union, that DCG is safe. It has $2 billion in debt, including $575 million borrowed from its fixed-line lender, Genesis, which has halted customer withdrawals and stopped new lending.
One of the proposed acquisition prices is $300 million, but this is deemed too low. CoinDesk generates approximately $50 million in revenue per year from traditional online advertising and its consensus conferences.
Sources said that CoinDesk has not officially launched the sales process, but it has attracted interest from many potential buyers, including private equity firms, family offices, and peer-to-peer publications. Players like Blockworks and hedge funds are finding hard assets.
The comments stated that the news site did not need to be sold for any reason related to its business. Genesis’ troubles could force DCG to choose between its subsidiaries, should DCG decide to discontinue the Genesis business so CoinDesk and Grayscale can continue to grow.
CoinDesk offers a fresh, unbiased perspective to industry watchers compared to media that have strong ties to FTX, such as the New York Times and the Wall Street Journal.
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