Charles thinks the asking price of $200 million is too much.
In 2016, DCG paid around $500,000 to buy CoinDesk.
Charles Hoskinson, founder of Cardano, said on Friday that he is contemplating purchasing CoinDesk in order to transform it from a cryptocurrency news website into a hybrid of sorts, bringing together news and a community forum. He thinks the asking price of $200 million is too much, despite the fact that the transaction is fair in light of readership, crypto events, and effect on the sector.
Moreover, Charles Hoskinson, founder of Cardano, explained his motivations for wanting to acquire CoinDesk during a January 20 YouTube Live event. He thinks the media has been unfairly critical of the industry recently, and he notes that several media outlets have had their credibility harmed because of their connections to FTX, thanks to investments from firms associated with Sam Bankman-Fried.
Gross Profit of $50 Million
CoinDesk said on Wednesday that it has hired Lazard, a financial advisory firm, to assist it in evaluating potential strategic options. One of these possibilities is the prospect of selling all or part of the business. The news website is owned by Genesis, a lending subsidiary of Digital Currency Group, which has already filed for bankruptcy protection.
Although Charles Hoskinson claims not to have seen CoinDesk’s financials, the company had a gross profit of around $50 million. About $200 million is being sought for the sale. In 2016, DCG paid around $500,000 to buy CoinDesk.
But he thinks the crypto space might benefit from a reliable news source. He also proposed the idea of transforming non-fungible tokens from different news articles into an interactive medium.