BuzzFeed is going public in a deal with a special purpose acquisition company (SPAC), which will give the digital media company an implied valuation of $1.5 billion once the pact closes, the company said.
BuzzFeed will become a publicly listed company through a merger with 890 Fifth Avenue Partners, a SPAC that holds $288 million in cash in its trust account. In addition, BuzzFeed has secured $150 million in financing led by Redwood Capital Management and including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial.
As part of the transaction, BuzzFeed plans to acquire Complex Networks, a global youth content and network with targeting millennials and Gen Z, from Verizon and Hearst for $300 million, comprising $200 million in cash and $100 million of equity in BuzzFeed. That will be completed simultaneously with the closing of BuzzFeed’s merger with 890 Fifth Avenue Partners.
BuzzFeed’s SPAC merger is expected to close in Q4 2021. The parent company will be known as BuzzFeed Inc. and trade its shares of common stock on a public exchange under the ticker symbol “BZFD.”
BuzzFeed’s management team will remain in place, with Jonah Peretti, BuzzFeed’s founder and CEO, and Felicia DellaFortuna, its CFO, continuing in their roles along with other executive team members. In addition, Adam Rothstein, Executive Chairman of 890 Fifth Avenue Partners Inc., and Greg Coleman, an advisor to 890 Fifth Avenue Partners Inc. and former BuzzFeed President, will join BuzzFeed’s Board of Directors. Two additional board members will also be announced in the coming months bringing additional expertise and representation to the combined company.
“BuzzFeed is now the undeniable leader for the next generation of media. We’ve built a slate of essential brands, loved by the most diverse, engaged, and loyal audience on the Internet,” Peretti said in a statement. “With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business. I am thrilled to have Adam join our team as we work towards becoming the world’s preeminent digital media company.”
Pictured above: Jonah Peretti, BuzzFeed founder and CEO