BuzzFeed reportedly in talks to go public via SPAC merger

BuzzFeed Inc. is reportedly in talks to go public through a merger with U.S. based SPAC company 890 5th Avenue Partners Inc., according to the sources familiar with the matter. 

According to Bloomberg’s report, one of the sources who requested to remain anonymous said that once the company goes public, it could use its currency for future acquisitions. 

While the sources couldn’t learn about the prizing terms of the possible merger because the deal hasn’t been finalized yet and the talks could end, BuzzFeed and the special purpose acquisition company 890 5th Avenue Partners Inc. didn’t immediately respond to Bloomberg’s request for comment.

The ongoing pandemic caused  BuzzFeed to lay off some of its staff due to the decrease in its revenue generated from advertising and live events. 

In November 2020, the company announced that it agreed to acquire the U.S. based news website HuffPost from Verizon Media. Under the agreement, Verizon acquired a minority stake in BuzzFeed which increased the company’s value to $1.7 billion which is approximately the same as the value BuzzFeed reported in 2016. 

A few days ago,  less than a month after the acqıisition went through, HuffPost laid off 47 employees in the United States and also closed the company’s Canada operations. 

While BuzzFeed CEO Jonah Peretti said that the decision was meant to compensate for the losses of HuffPost, a union of HuffPost employees named the situation as “devastated and infuriated”.  

‘’We never got a fair shot to prove our worth,” the HuffPost Union said in a statement. 

Founded last year, 890 5th Avenue is led by Executive Chairman Adam Rothsein and Chief Executive Officer Emiliano Calemzuk. The firm specializes in ‘converging technology, media and telecommunications opportunities’. In January, the SPAC company raised $287.5 million via an initial public offering.