Facebook whistleblower says transparency is needed to fix social media issues
American digital company BuzzFeed, known for its viral content and journalism, will go public on December 6th after initially raising less money than expected.
In a press release on Friday, BuzzFeed said it had completed a merger with 890 5th Avenue Partners, a special purpose vehicle for acquisitions (SPAC) aimed at raising funds to acquire an existing company through an IPO.
Buzzfeed’s shares are expected to trade on Monday under the symbol “BZFD” on the Nasdaq.
BuzzFeed aimed to be worth $ 1.5 billion on Wall Street, but brought in only $ 16 million from the SPAC deal announced in June.
The company originally said 890 5th Avenue Partners held approximately $ 288 million in cash, but the majority of investors eventually pulled out.
The digital company also raised $ 150 million in debt financing as part of the deal.
Founded in 2006, BuzzFeed was first known for its lists and current quizzes before adding a Pulitzer Prize-winning news section, YouTube channel, and podcasts.
In November 2020, the New York-based platform bought the Huffington Post news site from Verizon without disclosing the amount.
Buzzfeed’s public listing came just days after news staff staged a 24-hour commute to protest the company’s failure to offer certain contract terms, including a $ 50,000 salary base, after nearly two years of negotiations.
“BuzzFeed will not give in on critical issues like wages – while preparing to go public and make executives even richer,” the union said on Twitter.
As part of the SPAC deal, BuzzFeed also acquired Complex Networks, a media company jointly owned by Verizon and Hearst.