BuzzFeed investors pull funds as company plans to go public via SPAC: report

buzzfeed, ipo, spac

BuzzFeed isn’t expected to raise significant cash through its public listing as investors have pulled out the bulk of their money, according to a new report. Getty Images

BuzzFeed, the digital media company known for a curious mix of quizzes, listicles and hard hitting news stories, isn’t expected to raise as much cash via its public listing as it once advertised.

Citing anonymous sources, The Wall Street Journal reported Thursday that investors in the blank-check company that BuzzFeed is combining with in order to go public, are pulling out the bulk of their money.

BuzzFeed, which is set to begin trading in the coming days, will likely raise “a fraction” of the $287.5 million it initially expected, The Journal said.

In June, BuzzFeed ‘s co-founder and CEO Jonah Peretti announced plans for the company to go public through a merger with 5th Avenue Partners, a special-purpose acquisition company, or SPAC. These blank-check companies raise money and list on the stock exchange with the intent of merging with a private company to take it public.

buzzfeed, ipo, spac

BuzzFeed co-founder and CEO Jonah Peretti announced plans for the digital media company to go public via a SPAC in June.

Getty Images

But investors pulling out the bulk of their money, and according to The Journal, the reduced cash could put pressure on BuzzFeed’s balance sheet. BuzzFeed has also secured $150 million in convertible note financing.

BuzzFeed did not return requests for comment.

The digital media giant has said that the SPAC deal would help it bring in new talent, pursue acquisitions and lift sales by 25 percent annually through 2024. BuzzFeed’s SPAC deal is also financing this summer’s acquisition of lifestyle publisher Complex Networks. That acquisition comes on the heels of BuzzFeed’s deal to buy HuffPost earlier this year.

The pullback in financing comes as the once-hot SPAC market has cooled, in part because of new scrutiny from the Securities and Exchange Commission on overinflated revenue projections made by some startups that are merging with SPACs.

buzzfeed, ipo, spac

BuzzFeed is now expected to receive only a fraction of the $287.5 million held by the SPAC, according to a new report.

Getty Images

Other companies have pulled the plug on their SPAC plans amid declining stock prices for firms that go public this way. In recent months, BuzzFeed rival Vice Media ended talks to go public via a SPAC, in part because it didn’t have strong enough financials to make the deal work, sources told The Post at the time.

BuzzFeed said last month that its revenue totaled $90.1 million in the third quarter, up 20 percent over the year-ago quarter, thanks to a 39 percent jump in advertising sales. The company said it lost $3.6 million for the quarter

News Related

OTHER NEWS

SSC CGL Exam 2021: Last date to apply is January 23, here's how to apply

SSC CGL Exam 2021: The Staff Selection Commission (SSC) had released online applications for the Combined Graduate Level Examination 2021 on their website. The last date to submit online applications ... Read more »

Taliban warns against women's rights activism after two activists were seized from their homes

© Provided by WION Taliban authorities have warned that they have all the rights to crackdown on dissent and jailed protestors. This comes in as concerns grow over the disappearance ... Read more »

Florida redistricting plan faces opposition from DeSantis

© The Hill Florida redistricting plan faces opposition from DeSantis Florida state senators this week offered a rare hint of bipartisan agreement on a plan to redraw a swing state’s ... Read more »

Taraji P. Henson Just Dropped Her Favorite Deep Conditioning Mask for Natural Curls

Taraji P. Henson just showed how to use her favorite hair mask for an at-home twist-out—and it’s from her own haircare line, of course. The Empire star relies on the ... Read more »

People share their colleagues' acts of incredible kindness

Most people spend hours of their life at work, so it’s not surprising that they often become good friends with their colleagues.  But these co-workers from the US and Canada  ... Read more »

Donald Trump blasts the 'vicious' Jan. 6 committee and NY AG for targeting his children Ivanka and Donald Jr.

© Timothy A. Clary/AFP via Getty Images Donald Trump along with his children Eric(L) Ivanka and Donald Jr. arrive for a press conference January 11, 2017 at Trump Tower in ... Read more »

Can they fix it? UK project to explore ability and desire to repair tech

© Provided by The Guardian Photograph: Hero Images/Getty Images From fancy toys to smartphones, when technology breaks, it often seems simplest to ditch it for a new model. But now ... Read more »

‘We now have hope', ‘Time to get behind the team' – These Oldham Athletic fans react to major club announcement

© Provided by Football League World john sheridan For the fourth time in his long managerial career, John Sheridan has become the manager of Oldham Athletic after the club announced ... Read more »

Vicky Kaushal & Katrina Kaif share THIS one big interest & it's proof that ‘they are made for each other'

Vicky Kaushal and Katrina Kaif are one of the cutest couples of Bollywood currently. The newlyweds have been taking social media by quite a storm with their lovey-dovey pictures. Be ... Read more »

Diana Penty to have a busy 2022, collaboration with Dharma Productions expected

© Provided by Mid-Day Diana Penty seems to have a jam packed calendar in 2022! The actress has her hands full with four back to back projects. While she makes ... Read more »

Tahir: As a romantic hero, thrilled that my acceptance is higher than Mardaani

© Provided by Mid-Day Tahir Raj Bhasin is over the moon because he has been unanimously accepted as a romantic hero because of his powerful acting in back-to-back two web ... Read more »

Hyderabad Traffic Police use 'Akhanda' scene to drive home message on seat belts

© IANS Hyderabad Traffic police use ‘Akhanda’ scene to drive home message on seat belts. Chennai, Jan 23 (IANS) The Hyderabad Traffic Police has used a scene from director Boyapati ... Read more »

WRC Monte Carlo: Loeb reclaims lead as Ogier suffers puncture on penultimate stage

The nine-time champion faced a 24.6s deficit heading into Stage 16 after Ogier extended his overnight 21.1s lead on Stage 15, but the M-Sport driver was handed a lifeline when ... Read more »

Germany to provide medical help to Ukraine – but no weapons

Germany plans to send a field medical facility to Ukraine next month but it continues to refuse the transfer of weapons despite fears of a Russian invasion. In February, “a ... Read more »

Camila Cabello visits adult shop after Shawn Mendes split

© IANS Camila Cabello Los Angeles, Jan 23 (IANS) Singer Camila Cabello was seen stepping into sex shop in Los Angeles,nearly three months after her break-up from longtime boyfriend and ... Read more »

IPL 2022: Five England Players Who Could Rake in Money at the Mega Auction

© Provided by News18 IPL 2022: Five England Players Who Could Rake in Money at the Mega Auction The IPL 2022 mega auction is less than a month away now, ... Read more »

Rangers boss labels Ibrox starlet 'one of the big talents' as he makes Feyenoord comparison

Rangers boss Giovanni Van Bronckhorst says Alex Lowry is one of the Ibrox club’s most promising talents. The teenager – who hails from Uddingston and attended Motherwell’s Braidhurst high school ... Read more »

Impoverished Afghan women are receiving emergency aid in crypto as the Taliban limits cash withdrawals and millions go hungry

© Fereshteh Forough Girls learn to code at the Code to Inspire school in Herat, Afghanistan. Fereshteh Forough Desperate Afghans are struggling to withdraw cash as the economy crumbles under ... Read more »

Man threatens staff with hammer during armed robbery in Malahide

© Shutterstock kavee29 File photo GARDAÍ HAVE ARRESTED two people following a robbery in Malahide last night. Shortly before 10pm yesterday a man entered a retail premises in Waterside, Malahide, ... Read more »

X Games: Mark McMorris breaks Shaun White record on quest for first Olympic gold

© Getty Images Canadian Mark McMorris won a record-breaking sixth Winter X Games snowboard slopestyle title, moving one ahead of Shaun White‘s tally, but there is still one gaping hole in his ... Read more »

Israeli ultra-Orthodox party leader resigns over graft

© GALI TIBBON Aryeh Deri, pictured here in 2015, served as Israeli ex-premier Benjamin Netanyahu’s interior minister The leader of Israel’s largest ultra-Orthodox Jewish party submitted his resignation from parliament ... Read more »

Israel becomes world leader in live donor kidney donations - WHO

© (photo credit: MCT) A model of human kidneys. In 2020, Israel was the country with the most living kidney donors worldwide, according to a recent World Health Organization (WHO) report.  ... Read more »

Pekerja kilang sarung tangan mogok, dakwa rakan sekerja ‘dipukul pengawal'

© Provided by Free Malaysia Today Pengawal keselamatan di kilang sarung tangan itu didakwa memukul seorang pekerja wanita warga Indonesia dan seorang pekerja lelaki warga Bangladesh. PETALING JAYA: Pekerja sebuah ... Read more »

Milwaukee's mask mandate now in effect until March 1

More than six months after Milwaukee’s mask mandate expired, the mandate is back because of the omicron surge. Read more »

Im Würgegriff der Tabaklobby – wieso es Werbeverbote in der Schweiz schwer haben

Die Initiative für ein Tabakwerbeverbot will der Zigaretten-PR in der Schweiz den Garaus machen. Eine Herkulesaufgabe, denn bis anhin scheiterten alle Versuche für mehr Prävention an einer übermächtigen und undurchsichtigen ... Read more »

Buccaneers vs. Rams: Preview, predictions, what to watch for

An inside look at Sunday’s Buccaneers-Rams NFC divisional matchup in Tampa, Fla.: Marquee matchup Jalen Ramsey vs. Mike Evans and Rob Gronkowski Ramsey, who is comfortable in the slot, lined ... Read more »

Syria: Deadly fighting continues after 'Islamic State' prison break

© Provided by DW Kurdish security forces have deployed throughout al-Hasaka as fighting continues Fighting at a prison in the northern Syrian city of al-Hasaka entered a fourth day on ... Read more »

Rob Brydon admits he has been asked to do Masked Singer as he swerves claims he's Traffic Cone

FUNNYMAN Rob Brydon has refused to comment on speculation he could be Traffic Cone on the Masked Singer. The 56-year-old, who is known for being a great singer, did however ... Read more »

LTNs blamed for delays to thousands of fire engines London

There has been fury after low-traffic neighbourhoods (LTNs) were blamed for delays to more than 3,000 fire engines out on emergency calls in London. Analysis of data from London Fire ... Read more »

Room Rents In London Are At Their Lowest In 7 Years

We all know that living in London is incredibly expensive, but according to new figures, room rents in the capital are at their lowest in seven years. According to SpareRoom, ... Read more »

The shrimp returns: beloved flamenco singer Camarón stars in graphic novel

In death, as in life, the legendary flamenco singer Camarón de la Isla continues to confound expectations, cross borders and demand that his blistered and blistering voice be heard. The ... Read more »

The week in theatre: Moulin Rouge! The Musical; Conundrum – review

There isn’t any trouble at the mill. At least as far as Alex Timbers’s production of Moulin Rouge! The Musical goes. Picture-book belle époque Paris takes over the Piccadilly: swags ... Read more »

Everton star Danielle Turner opens up on overcoming 'unusual and bizarre' injury trouble

If I’m being totally honest, last year was a difficult one for me. It was an injury, but it didn’t feel like an injury. One day I was absolutely fine, ... Read more »

'Jabs for Kebabs': Brothers offer vaccines at grill after father hospitalised

© PA ‘Jabs for Kebabs’: Brothers offer vaccines at grill after father hospitalised Two brothers in Gravesend who own a Punjabi restaurant have been offering jabs with kebabs after their ... Read more »

Bournemouth make transfer approach for Peterborough man amid Celtic, Rangers and Fulham interest

© Provided by Football League World Championship – Peterborough United v AFC Bournemouth Championship promotion chasers AFC Bournemouth have had multiple offers rejected for Peterborough United attacker Siriki Dembele, according ... Read more »

Amalgam Is Auctioning Off Its Hidden Treasures

© Motor1.com Amalgam Hidden Projects Model Car Auction At Catawiki Most of them never went on sale. Amalgam is known for making model cars that come with exquisite details. Its ... Read more »

CII for additional 1 pc CSR levy in Budget to provide Covid vaccine booster shots

© Provided by The Financial Express The chamber said it expects Budget 2022-23 to focus on measures for strengthening economic recovery. Industry body CII has suggested the government include an ... Read more »

Malaysia former PM Mahathir still in hospital, says his daughter

© Reuters/HUSSAIN HASNOOR A general view of the National Heart Institute at Kuala Lumpur KUALA LUMPUR (Reuters) -Malaysia former prime minister Mahathir Mohamad, 96, is still being treated in hospital ... Read more »

Italy's Berlusconi hospitalised in Milan - source

© Reuters/FLAVIO LO SCALZO FILE PHOTO: Italy’s former prime minister, Silvio Berlusconi, reacts after casting his vote during Italian elections for mayors and councillors MILAN (Reuters) – Former Italian Prime ... Read more »

Dr M masih di IJN, keluarga pinta jangan dengar khabar angin

© Provided by Free Malaysia Today Marina berharap orang ramai tidak mengendahkan khabar angin disebarkan oleh sumber tidak sahih mengenai kesihatan bapanya, Dr Mahathir Mohamad. PETALING JAYA: Orang ramai diminta ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic