Media Company BuzzFeed to be Listed on Wall Street
Media company BuzzFeed is listed on the stock exchanges in New York. The American company behind the news site of the same name will merge with an empty stock market shell behind which a group of investors is behind. The deal will value BuzzFeed at $1.5 billion.
The listing takes place via a merger with the stock exchange hub 890 5th Avenue Partners, a so-called ‘special purpose acquisition company’ or ‘spac’. With a spac, money is raised to take over a company, which is then listed on the stock exchange. In March, it was reported that BuzzFeed was working on an IPO on Wall Street and was in talks with the stock market shell.
BuzzFeed was founded in 2006 and initially gained fame mainly with online quizzes and funny lists that mainly had to generate ‘clicks’. Gradually, the media company increasingly focused on more in-depth journalism, with many investigative stories of its own.
The IPO comes after a turbulent year for BuzzFeed, which lost a lot of advertising revenue due to the corona crisis and cut its workforce significantly. In the fall of 2020, the company acquired competitor Huffington Post from media and telecom group Verizon Communications, which acquired a minority stake in BuzzFeed. After that deal, it was announced that several dozen more jobs would be lost at Huffington Post.