The digital media company BuzzFeed announced on Thursday its plans to go public through a Spac and has set the goal of reaching a value of 1.5 billion dollars.
The Spac are companies that are financed by going public, but that do not have operations and their objective is to merge (buy) with real companies. As this happens, the real company goes public, skipping the traditional process of an Initial Public Offering (IPO).
BuzzFeed plans to merge with Spac 890 Fifth Avenue Partners in the fourth quarter of the year and will go public on the Nasdaq, where the main technology companies are listed, with the ticker (the name they use on the stock market) BZFD.
The company also reported that it intends to acquire Complex Networks, a company focused on clothing, music and culture and aimed at young millennials and Gen Z.
“BuzzFeed will be the leader of the next generation of media with a strong portfolio of brands in key categories,” the company said in the statement citing Complex Networks, as well as HuffPost, whose purchase it announced in November, and Tasty, a brand. of food.
For Jonah Peretti, founder and CEO of BuzzFeed, the company “is now the undisputed leader for the next generation of media. We have created a list of essential brands, loved by the most diverse, engaged and loyal audience on the internet. “
Peretti also stressed that the acquisition of Complex Networks will allow BuzzFeed to reach new audiences, complement its entertainment, news and lifestyle brands and open the door to more income opportunities.
BuzzFeed’s annual revenue in 2020 was $ 321 million and its earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) were $ 31 million.
For this year, the company estimates total revenues of 654 million and an adjusted EBITDA of 117 million.
Spacs have become popular in recent months, especially in the United States stock market to make different companies public. The latter include WeWork, the investment platform e-Toro and the sports betting operator DraftKings.
With information from EFE.
