BuzzFeed in talks to go public through merger with 890 Fifth Avenue, a SPAC focused on media and telecom
BuzzFeedis in talks to go public via a merger with 890 Fifth Avenue, Bloomberg reported Wednesday.
- The latter company is a special-purpose acquisition company focused on
- The deal talks are not finalized and could still fall apart, according to Bloomberg.
BuzzFeed is considering going public through a merger with the special-purpose acquisition company 890 Fifth Avenue Partners, Bloomberg reported Wednesday.
The terms of the deal aren't publicly known, and talks are ongoing and can still fall apart, according to Bloomberg.
BuzzFeed and 890 Fifth Avenue did not immediately respond to requests for comment on this story.
BuzzFeed, a New York City-based digital-media company, was founded in 2006 and completed its acquisition of HuffPost from Verizon last month, before laying off 47 staffers earlier this week.
Jonah Peretti, who cofounded BuzzFeed and serves as the CEO of the two companies, told staffers the layoffs were meant to "enable
BuzzFeed also furloughed about 70 employees last year, including roughly 20 BuzzFeed News employees, during negotiations with its editorial union as it sought to cut losses across the company. BuzzFeed eventually laid off 50 employees in total, about 6% of its workforce, according to The Wrap.
In its initial public offering in January, 890 Fifth Avenue raised $287.5 million, according to a press release. The "blank-check" company, which is named after the fictional Avengers mansion, said it planned to focus on media and entertainment businesses.
SPACs typically aim to first secure a stock-market listing and then acquire a private company, offering businesses an alternative to the traditional IPO process. SPACs have skyrocketed in popularity over the past year, with 130 having gone public this year alone - more than in the first nine months of 2020.
But the boom has sparked concerns there could be a SPAC bubble, which triggered a recent wave of sell-offs.
The think tank Americans for Financial Reform and the Consumer Federation of America told Congress in a February letter the
SPACs have also received pushback from investors such as Warren Buffett's business partner Charlie Munger and Chris Sacca - an early investor in Uber, Twitter, and Instagram who recently said he had received multiple invitations to sit on the boards of SPACs with the expectation that "you'll get [lots of shares] for just putting your name on it and doing nothing.'"
- Electric two-wheeler sales rise in Nov as Ola Electric scales a new high
- Virtual credit cards have a limited use case – When should you consider one?
- Cyclone Michaung likely to intensify; Sec 144 imposed in coastal areas of Puducherry
- NCRB report shows sharp increase in Cyber Crime cases in states, Metros; overall dip in IPC cases registered in 2022
- Cong in 'striking distance' of BJP in terms of vote share: Jairam Ramesh