Buzzfeed to go public through $1.5bn US Spac deal
Buzzfeed today unveiled plans to go public through a blank-cheque deal that will value the media firm at $1.5bn (£1bn).
The website, known for its listicles and quizzes, said it will merge with 890 Fifth Avenue Partners, a Nasdaq-listed special purpose acquisition company (Spac) that holds $288m in its trust account.
In addition, Buzzfeed has secured around $150m in convertible note financing from backers including Redwood Capital Management, Crossing Bridge Advisors, Cohanzick Management and Silver Rock Financial.
As part of the deal, the company also plans to acquire youth-focused entertainment group Complex Networks.
“Buzzfeed is now the undeniable leader for the next generation of media. We’ve built a slate of essential brands, loved by the most diverse, engaged, and loyal audience on the internet,” said chief executive Jonah Peretti.
“With today’s announcement, we’re taking the next step in Buzzfeed’s evolution, bringing capital and additional experience to our business. I am thrilled to have Adam join our team as we work towards becoming the world’s preeminent digital media company.”
The deal is expected to close in the fourth quarter this year.
BuzzFeed generated $321m in annual revenue and $31m in adjusted Ebitda in 2020, in large part due to its e-commerce business, a spokesperson previously told CNBC. The company is estimating $654m in revenue in 2022 and $117m in adjusted Ebitda.