Rumors are swirling that investors are looking to buy Coindesk, a cryptocurrency news outlet. On Jan. 18, Wang Feng, founder of China-based Marsbit news publication, announced his desire to purchase Coindesk with other members of the crypto industry. This announcement comes not long after a report from Semafor that in late November 2022 Coindesk had received multiple takeover requests.
Reported Asking Price: $200M or More – Charles Hoskinson and Marsbit Express Interest in Buying
Investors are said to be taking a look at buying cryptocurrency news outlet Coindesk after its parent company Digital Currency Group (DCG) filed for bankruptcy. DCG is the sole owner of the independent news and conference company.
Charles Hoskinson, co-founder of Ethereum and Cardano, has stated that the reported sale price is around $80 million. The estimated value of the news publication is $200 million according Hoskinson. The Ethereum founder has publicly expressed his interest in purchasing Coindesk, as seen in a Youtube video entitled “Buy Coindesk.”
Hoskinson’s listing is lower than the estimate reported by Semafor in late November 2022 when sources informed the news outlet that investors were interested in buying Coindesk. According to the report, people familiar with the matter stated that the $300 million estimate was “considered too low.”
As Bradley Saacks of Semafor notes, conferences and advertising are the main source of revenue for many companies. As the “income bracket of both is rapidly shrinking,” this could be a factor in the asking price. In addition to Charles Hoskinson, Wang Feng, founder of the China-based Marsbit news publication, has announced his intent to purchase the publication. Marsbit is supported by Binance, the largest cryptocurrency exchange based on trade volume.
According to Wang’s Jan. 18 tweet, Marsbit is willing to “organize a number of known funds to jointly acquire and integrate Coindesk.” The proposed acquisition would also include Coindesk’s conferencing business. Coindesk was originally founded by entrepreneur Shakil Khan in 2013 and was backed by early investor Bitpay. DCG acquired Coindesk in January 2016 for an estimated value of between $500,000 and $600,000, according to Techcrunch reporter Lucas Matney. Coindesk published an article on the acquisition, noting that they were “excited” to have DCG, one of their “early investors and supporters.”
What do you think about the investor interest surrounding Coindesk from players like Charles Hoskinson and Marsbit founder Wang Feng? Share your thoughts on this topic in the comments below.
