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BuzzFeed’s recently announced plans to go public seem to have triggered quite a bit of interest among investors.
The digital media giant, searches around which has soared massively in the last few days, has created a significant international presence in its roughly 15 years of history, especially among the younger audience. It is known for its quirky quizzes, videos and articles covering various categories, ranging from entertainment to award-winning news content. With the dependence on online content consumption expanding by the day, the company is likely to grow further with time.
Investors seem to have quite a few queries regarding its announcement of going public, so let us address them one by one.
BuzzFeed IPO date?
For starters, BuzzFeed does not seem to be looking for an initial public offering (IPO). The company has said that it will be going public via a merger with a special purpose acquisition company (SPAC).
The New York-based enterprise plans to be merging with blank check company 890 Fifth Avenue Partners (NASDAQ: ENFA, ENFAU, ENFAW).
BuzzFeed valuation?
BuzzFeed said that it is targeting to hit a valuation of US $1.5 billion upon the deal’s closure.
BuzzFeed SPAC merger – Key insights
Proceeds from this SPAC merger, BuzzFeed said, will include up to US$ 288 million, which 890 Fifth Avenue is said to have in its trust accounts.
Apart from the cash in the trust account, the merger could also bring in an additional proceed of US$ 150 million, which the SPAC is said to have raised in a convertible note funding headed by Redwood Capital Management.
BuzzFeed said in its official release that as a part of the transaction, it will also be seeking to acquire global youth network Complex Networks.
Following the merger, the new firm is set to be named ‘BuzzFeed Inc.’ and launch on the Nasdaq platform under the ticker of ‘BZFD’.
Founder Jonah Peretti will continue to serve as the enterprise’s CEO after the merger. Mr Peretti, who is happens to be actor-cum-comedian Chelsea Peretti’s brother, said that going public is the “next step in BuzzFeed’s evolution”.
If you are looking to park your funds in BuzzFeed shares, you can begin by opening up an account for stock trading or by getting in touch with brokers. Whenever the shares begin trading in the markers, which is likely to happen by year-end, you can begin trading after thorough research on the company.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
