- BuzzFeed (BZFD) merger with special purpose acquisition company 890 Fifth Avenue partners (ENFA) will close on Friday.
- BuzzFeed earned US$166.2 million in cash and convertible notes in the SPAC deal.
- SPAC listings have slowed after SEC issued stricter guidelines in April 2021.
Technology-powered media company BuzzFeed Inc. is going public through a merger with 890 Fifth Avenue Partners (ENFA), a special purpose acquisition company (SPAC).
After the merger concludes on Friday, BuzzFeed will start trading on Nasdaq stock exchange on Dec 6 under the ticker symbol BZFD.
The New York-based diversified company reaches millions of people globally through its articles, quizzes, videos, lifestyle, and food content.
The company currently employs around 1,100 people around the world.
The company will earn around US$166.2 million in cash and convertible notes, held in a SPAC trust account. Earlier, SPAC shareholders approved a US$16.2 million in cash and US$150 million in fully committed convertible notes for BuzzFeed payment.
BuzzFeed was valued at US$1.5 billion in June this year.
Also Read: Whitepaper on SPACs in the US
The SPAC Deal
Originally, BuzzFeed was expected to earn US$288 million from the merger. Instead, it will now get around 6% of the proceeds from the SPAC trust account.
It happened because the SPAC shareholders withdrew most shares ahead of the closure.
The combined entity's shares will start trading on NASDAQ from Dec 6, 2021, under the ticker symbol ‘BZFD’.
On Friday, shares of 890 5th Avenue Partners, Inc. (ENFA) jumped 5.95% to US$10.50 at 9:38 am ET.
The pace of SPAC listings has slowed down since the second quarter of 2021 after the Securities and Exchange Commission (SEC), the top US market watchdog, introduced stricter accounting guidelines from the SPAC companies. In Q1, around US$96 billion was raised in 295 SPAC mergers.