The founder of online news site BuzzFeed remains determined to build an online media behemoth despite investors in a shell company that is taking it public pulling nearly all their money before the float.
Speaking to the Financial Times Jonah Peretti said the investor flight “doesn’t change our strategy… I’m not an expert on Spacs, I just see Spacs as a means to an end for us”.
Investors in the special purpose acquisition company, or Spac, that is taking BuzzFeed public have withdrawn 94 per cent of their money.
“Digital media still has a little bit of a hangover from the bursting of the hype five years ago. My opinion is that it should be valued more highly than the market is right now,” Peretti added.
890 Fifth Avenue Partners raised over $280m and announced its merger with BuzzFeed in June. However, the news site will end up receiving just $16m of that money and $150m from a convertible bond.