BuzzFeed announces its intention to go public via PSPC
BuzzFeed, a 15-year-old digital media company, ad On Thursday, it plans to go public through a merger with a publicly traded special purpose acquisition company.
The company, which is merging with 890 Fifth Avenue Partners, is targeting a valuation of $ 1.5 billion. The deal is expected to be finalized in the fourth quarter.
BuzzFeed also plans to acquire Complex Networks, a digital publisher specializing in streetwear, music and culture, for $ 300 million. The deal consists of $ 200 million in cash and $ 100 million in equity in BuzzFeed, the company said. He added that he “will immediately accelerate the growth of BuzzFeed’s revenues”.
PSPC could help strengthen the company’s position to acquire other digital media companies, BuzzFeed co-founder and chief Jonah Peretti told CNBC’s “TechCheck”. Peretti said there are “many other exciting opportunities”.
“I have spoken to company founders, to management teams of companies, I think there is a lot of enthusiasm to join us,” said Peretti. BuzzFeed acquired the HuffPost news site from Verizon Media in November for an undisclosed amount.
BuzzFeed generated $ 321 million in annual revenue and $ 31 million in adjusted earnings before interest, taxes, depreciation and amortization in 2020, largely through its e-commerce operations. The company expects $ 654 million in revenue in 2022 and $ 117 million in adjusted EBITDA, according to a presentation to investors.
BuzzFeed will trade under the ticker symbol “BZFD” on the Nasdaq. The company said its management team will remain in place after the deal, with Peretti remaining CEO and Felicia DellaFortuna as CFO.
“With today’s announcement, we take another step forward in the evolution of BuzzFeed, bringing additional capital and experience to our business,” Peretti said in a statement earlier Thursday. The company has also stepped up its activities in other areas, leaning into e-commerce, selling things like branded cookware, and affiliate trade.
PSPC agreements have become an increasingly popular route to be made public over the past year. Several digital publishers, including Bustle Digital Group, Vox Media and Vice Media, had had discussions about a market launch via a SPAC, CNBC previously reported.