BuzzFeed's stock plunged Monday, putting the company's market cap below the $315 million that AOL paid for HuffPost in 2011
Buzzfeed's stock dropped about 40% on Monday.
- It's now worth about $300 million, per Yahoo Finance, far below its June IPO price of $1.5 billion.
BuzzFeed's stock dropped about 40% on Monday, putting its market cap below what AOL paid for HuffPost in 2011.
In early December, Buzzfeed went public via a SPAC merger. Its life post-IPO has been rocky; in its first earnings call as a public company, it cut its workforce, called for buyouts in its news division, and lost three top editors.
One analyst who watches the company and asked to be unnamed because of the sensitivity of the issue, told Insider the reason is relatively straightforward: lockup agreements for many of Buzzfeed's shareholders who bought stock in the company before it went public via SPAC in December expired early this June.
What makes BuzzFeed's situation "unique," the analyst added, is that the media company has a "heavy concentration" of what they called "non-traditional" investors, such as publishing companies.
"This was the first and biggest lockup to expire," the analyst added.
A BuzzFeed spokesperson confirmed the fluctuation was related to the expiration of the lockup period
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