Digital media company BuzzFeed has reportedly planned to go public by merging with a special purpose acquisition company (SPAC).
The company has merged with 890 Fifth Avenue Partners and is targeting a valuation of USD 1.5 billion. The transaction is expected to be finalized by the fourth quarter.
Apart from this, BuzzFeed has plans to take control of Complex Networks, a digital publisher specializing in music, culture, and streetwear, for a speculated deal of USD 300 million. The deal is split into two parts: USD 100 million in company equity and USD 200 million in cash. This move will help upscale the revenue growth of BuzzFeed, as apparently stated by the company.
The Co-Founder and CEO of BuzzFeed, Jonah Peretti, has reportedly stated that the SPAC will bolster BuzzFeed’s position and enable it to take control of other digital media companies. He also said that the company is also looking for other attractive prospects in the market.
Mr. Peretti also said that he held talks with company founders, management teams, and people who have expressed delight at the prospect of collaborating with BuzzFeed.
The 15-year old digital media company recently acquired news website HuffPost from Verizon Media. However, BuzzFeed has not disclosed the amount for the deal.
In 2020, BuzzFeed obtained USD 31 million in adjusted earnings prior to taxes, interest, amortization, and depreciation & generated an annual revenue of USD 321 million. This was primarily owing to its online business. The company estimates a revenue of USD 654 million and adjusted earnings of USD 117 million by 2022.
BuzzFeed will trade on the Nasdaq under the ticker ‘BZFD’. After the deal, the company will retain its management team and Peretti will continue as CEO with Felicia DellaFortuna as CFO.
Peretti added that this announcement will help BuzzFeed evolve its business, bring significant capital investment, and add experience to the team.