BuzzFeed eyes US$1.5bn-valuation after SPAC deal

June 24, 2021 12:19 PM PDT | By Team Kalkine Media

Google News:

BuzzFeed eyes US$1.5bn-valuation after SPAC deal — Image source: VideoFlow,Shutterstock

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Summary

The media and entertainment company plans to go public via SPAC deal.

BuzzFeed expects a valuation of US$1.5 billion after the SPAC merger.

It also plans to buy digital publisher Complex Networks for US$300 million.

News, media, and entertainment company BuzzFeed Inc. has said that it is in talks for a stock listing via a SPAC merger.

BuzzFeed expects a valuation of US$1.5 billion after the merger with 890 fifth Avenue Partners Inc., the company said on Thursday.

It hasn’t revealed which exchange it would prefer for the stock listing.

The blank cheque company, named after the superheroes of Marvel’s Avengers, was founded by Adam Rothstein.

The merger is expected to be completed by the end of 2021.

Also read: AT&T To Combine WarnerMedia With Discovery In US$43B Deal

Source: Pixabay.

BuzzFeed also said it will acquire digital publisher Complex Networks, known for pop culture, music, and streetwear, for US$300 million.

BuzzFeed’s valuation was US$1.7 billion in 2016 when Comcast Corp.’s NBC Universal invested US$200 million in the company.

BuzzFeed also plans to raise U$150 million through convertible notes. Redwood Capital Management and others are leading the funding round.

Last November, BuzzFeed bought the online media company HuffPost for an undisclosed amount.

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Jonah Peretti, a former schoolteacher, founded BuzzFeed in New York in 2006. Rich Antoniello, the Complex Networks Founder and CEO, will serve as a strategic advisor to BuzzFeed and its CEO Jonah Peretti.

At the same time, Christian Baesler will join the BuzzFeed management after becoming the CEO of Complex Networks.

Also read: Three Communication Stocks To Explore

BuzzFeed owns the news ventures BuzzFeed News and HuffPost News. On the other hand, Complex Network generates content on street food, fashion, etc.

BuzzFeed CEO Jonah Peretti said that he is excited to have Complex Network as part of the BuzzFeed family. He said, “It has a more diverse audience.”

Also read: Why is Globalstar Inc. (GSAT) trading high?

SPACs have become a popular route for companies to go public and raise funds in the stock market. SPAC companies are also called blank-check firms. SPAC mergers have become a vogue in recent times.

SPACs raise huge amounts of funds during mergers. In return, private companies get a place on the stock exchange. SPACs must execute deals within two years, or they have to return the money raised to investors.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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