BuzzFeed, a New York-based provider of digital news and entertainment content, has revealed plans to go public through a merger with blank-check company 890 fifth Avenue Partners Inc, in a deal valuing the online media outlet at US $1.5 billion. The deal includes a US $150 million convertible note financing led by Redwood Capital Management, with contributions from institutional investors including Cohanzick Management, CrossingBridge Advisors, and Silver Rock Financial LP and is expected to close in the fourth quarter of 2021. BuzzFeed was valued at US $1.7 billion in 2016 when Comcast Corp’s NBCUniversal invested US $200 million in the media unicorn.
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As part of the transaction, BuzzFeed said it intends to acquire Complex Networks, a youth entertainment company from Hearst and Verizon, for US $300 million. The company will also be listed on a public exchange under the ticker symbol “BZFD”.
BuzzFeed’s portfolio also includes BuzzFeed News and food network Tasty. Acting as the financial adviser to BuzzFeed for the deal is BofA Securities, while Cowen serves as financial and capital markets adviser and lead placement agent for 890 Fifth Avenue Partners (who recently raised US $287.5 million in its IPO in January this year, including the underwriters’ option).
According to co-founder and CEO of BuzzFeed, Jonah Peretti, “With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business. There will be more acquisitions as there are more exciting companies out there that we want to pursue.”
Company Profile
BuzzFeed is a cross-platform digital media company delivering news and entertainment content to a global audience. The company is dedicated to redefining online advertising with its social, content-driven publishing technology. BuzzFeed provides the most shareable breaking news, original reporting, entertainment, and video across the social web to its global audience of over 200 million subscribers. BuzzFeed covers breaking news, produces original videos, and creates content that people want to share on the web.
BuzzFeed was founded in 2006 with its headquarters in New York, United States. The company founders are Jonah Peretti, John Johnson, and Ankit Gupta.
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