DCG Offered $300M For CoinDesk by Potential Buyers
A recent report indicated that CoinDesk, an online news website, has garnered some takeover interest. The outlet has been attracting increased attention throughout the fall of FTX, as one of its articles is widely accepted to have undermined the exchange’s credibility.
Potential Buyers Offered $300 Million for CoinDesk
According to the article, multiple parties expressed an interest in the acquisition of CoinDesk, a new outlet and a part of Barry Silbert’s Digital Currency Group. Allegedly, one of the potential buyers offered $300 million to purchase the website.
Reportedly, CoinDesk has an annual revenue of $50 million. Furthermore, the outlet is the organizer of the Consensus Conference which is speculated to grow in relevance as it might fill the gap created by the fall of FTX. The website also garnered wider attention due to its role in the collapse of SBF’s business empire.
On November 2nd, CoinDesk published an article examining Alameda Research’s balance sheet. When Binance’s Changpeng Zhao explained that his company is liquidating its remaining FTT tokens due to “recent revelations”, many accepted the statement as referencing CoinDesk’s article.
It is unclear whether the offers are connected with the troubles other parts of the Digital Currency Group have been experiencing in the aftermath of FTX’s collapse. Furthermore, it is unclear if the DCG is even interested in selling CoinDesk.
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DCG and the FTX Contagion
Genesis, another company belonging to the Digital Currency Group, has been directly affected by the bankruptcy of FTX. On November 16th, its lending arm announced it was temporarily suspending withdrawals from its platform. In the weeks following the freeze, it was revealed that the firm unsuccessfully sought a $1 billion rescue package—though a related statement claimed that the company was engaged in “very positive conversations” with investors nonetheless.
The situation with Genesis caused concerns over the overall health of the Digital Currency Group as Barry Silbert’s company already suffered significant losses due to the bankruptcy of Three Arrows Capital. Furthermore, it was immediately forced to inject $140 million into Genesis to cover the initial losses stemming from the fall of FTX.
Barry Silbert sent a letter to his shareholders earlier this month in which he both admitted his company has $2 billion in debt but maintained an overall reassuring tone explaining he is expecting his group to make $800 million in revenue this year. On the other hand, it was reported around the same time that Genesis hired restructuring advisers, and is not yet out of the woods when it comes to potential bankruptcy.
Do you think the DCG is planning to sell CoinDesk? Let us know in the comments below.