BuzzFeed goes public after raising less money than expected – The New Indian Express

Through AFP

NEW YORK: US digital company BuzzFeed, known for its viral content and journalism, will go public on Monday, December 6, 2021, after initially raising less money than expected.

In a press release Friday, BuzzFeed announced that it has completed a merger with 890 5th Avenue Partners, a special purpose acquisition company (SPAC), which aims to raise funds through an initial public offering. savings to acquire an existing company.

Buzzfeed shares are expected to start trading on the Nasdaq Monday under the ticker symbol “BZFD”.

BuzzFeed was aiming to be valued on Wall Street at $ 1.5 billion, but it only raised $ 16 million through the PSPC deal, which was announced in June.

BuzzFeed initially said 890 5th Avenue Partners held around $ 288 million in cash, but the majority of investors eventually pulled out.

The digital company also raised $ 150 million in debt financing as part of the deal.

BuzzFeed, created in 2006, first gained recognition for its lists and themed quizzes, before expanding its offering with a Pulitzer Prize-winning news division, a YouTube channel and podcasts.

In November 2020, the New York-based platform bought the Huffington Post news site from Verizon, without disclosing the amount.

Buzzfeed’s public announcement comes just days after news branch workers staged a 24-hour strike to protest the company failing to come up with certain contract terms, including a base salary of $ 50,000, after nearly two years of negotiations.

“BuzzFeed will not budge on critical issues like wages – while preparing to go public and make leaders even richer,” the union said on Twitter.

As part of the SPAC deal, BuzzFeed also acquired Complex Networks, a media company jointly managed by Verizon and Hearst.

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