In a move aimed at severing ties with the scandal-ridden FTX, The Block, has announced a deal with Singapore-based venture capital firm, Foresight Ventures. This deal, valued at an impressive $70 million, notably marks a significant shift in The Block’s financial landscape.
New Leadership and Independence
Foresight Ventures is set to acquire an 80% stake in The Block for $60 million. This further ensures a majority ownership that positions the media company for an independent future. Larry Cermak, The Block’s CEO, remains the second-largest shareholder, while Forest Bai, CEO of Foresight, steps in as the chairman. Also, Tony Cheng, a partner at Foresight, secures a board seat in this transformative arrangement.
A “Fresh Start” for The Block
Expressing optimism about the new direction, Cermak took to X (formerly Twitter) to share that The Block is embarking on a “fresh start.” This shift in ownership is expected to breathe new life into the media company and open doors for strategic growth.
Foresight Ventures brings a strategic focus to the table. It aims to help companies, including The Block, tap into the vast user base in Asia. Cheng emphasizes a commitment to leveraging regulatory clarity and increased capital flow in the region, positioning The Block for enhanced growth.
Breaking Free from FTX Scandal, Strategic Investment and Growth Opportunities
The deal also allows The Block to distance itself from the FTX scandal that tarnished its reputation. The media company’s former ties to the defunct exchange were recently exposed. It was revealed that the majority shareholder, Mike McCaffrey, had taken substantial loans from Sam Bankman-Fried, the founder and former CEO of FTX.
In addition to the stake acquisition, Foresight Ventures is set to invest an undisclosed amount in advertisements with The Block during the first year. The capital is primarily directed towards purchasing the stake held by McCaffrey. The remainder however, will be allocated for a change of control clause.
Expanding Horizons with Foresight Ventures
Moreover, Foresight Ventures’ influence extends beyond The Block. This is with stakes in various Asian crypto media organizations like Block Temp and Foresight News, catering to Mandarin-speaking audiences.
Notably, the strategic investment aligns with Foresight’s vision to foster growth. This is particularly in challenging market conditions, as witnessed by the recent staff layoffs at The Block during a bear market.