BuzzFeed announces plans to go public via SPAC, targets $1.5 billion valuation

Jonah Peretti, Founder and CEO, Buzzfeed, speaks at the Wall Street Journal Digital Conference in Laguna Shoreline, California, U.S., October 18, 2017.

Lucy Nicholson | Reuters

BuzzFeed, a 15-yr-customary digital media firm, announced Thursday it plans to mosey public via a merger with a publicly traded special reason acquisition firm. 

The firm, merging with 890 Fifth Avenue Partners, is concentrating on a $1.5 billion valuation. The deal is anticipated to end within the fourth quarter.

BuzzFeed also plans to mark Complex Networks, a digital publisher that specializes in streetwear, song and culture, for $300 million. The deal is made up of $200 million in cash and $100 million of fairness in BuzzFeed, the firm acknowledged. They added this can also “correct away droop BuzzFeed’s income enhance.”

“With this acquisition, BuzzFeed turns into even better-positioned to thrive in an age of media consolidation,” the firm acknowledged. BuzzFeed in November got recordsdata internet online page online HuffPost from Verizon Media for an undisclosed quantity.

BuzzFeed generated $321 million in annual income and $31 million in adjusted EBITDA in 2020, in colossal share attributable to its e-commerce industry. The firm is estimating $654 million in income in 2022 and $117 million in adjusted EBITDA, according to an investor presentation.

SPAC deals absorb turn out to be an increasingly extra neatly-liked route to mosey public over this past yr. Numerous digital publishers, including Bustle Digital Neighborhood, Vox Media and Vice Media, had held talks about a market debut via a SPAC, CNBC previously reported.

BuzzFeed will commerce below the ticker image “BZFD” on the Nasdaq. The firm acknowledged its administration team will end in mumble following the deal, with founder Jonah Peretti closing CEO and Felicia DellaFortuna as its CFO.

“With right this moment time’s announcement, we’re taking the following step in BuzzFeed’s evolution, bringing capital and additional trip to our industry,” Peretti acknowledged in an announcement. The firm has also bulked up its industry in varied areas, leaning into e-commerce, promoting things fancy branded cookware, and affiliate commerce.

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