BuzzFeed is said to be in talks to go public via SPAC


Photographer: Drew Angerer / Getty Images

BuzzFeed Inc., the digital media outlet founded in 2006, is in talks to go public through a merger with 890 5th Avenue Partners Inc., a special-purpose acquisition company, according to people with knowledge of the matter.

Once public, the company can use its currency to target future acquisitions, said one of the people, who requested anonymity because the conversations are private. The value of a transaction could not be known immediately. As with any deal that hasn’t been finalized, the terms may change or the conversations may fall apart.

Representatives for BuzzFeed and 890 5th Avenue did not immediately respond to requests for comment.

The deal negotiations follow a tumultuous year for BuzzFeed, which fired employees during the pandemic and loss of revenue from advertising and live events. The company’s balance sheet had improved last November, when agreed to purchase the HuffPost online news service from Verizon Communications Inc.But now it’s going through another round of Lay offs, as it separates some employees from that acquisition.

As part of the HuffPost deal, Verizon acquired a minority stake in BuzzFeed that valued the company at approximately $ 1.7 billion. That’s roughly the same as BuzzFeed’s valuation in 2016, when Comcast Corp.’s NBCUniversal invested $ 200 million in the business, a person with knowledge of the matter at the time said.

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