BuzzFeed Plans To Go Public By SPAC Merger
Media company BuzzFeed said on Thursday that it would merge with special acquisition company 890 Fifth Avenue Partners Inc., (ENFA) to become a public company. Following the merger, BuzzFeed will be listed under the symbol “BZFD”.
The transaction, which has been approved by the both BuzzFeed and 890 Fifth Avenue Partners Board of Directors, is expected to be completed by the fourth quarter. Once the deal is completed, BuzzFeed’s implied valuation is expected to be $1.5 billion.
BuzzFeed will secure around $288 million of cash held in the special acquistion company account. BuzzFeed has also secured funding of about $150 million in convertible note financing led by Redwood Capital Management and including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial LP.
After the deal is completed, BuzzFeed’s management team will remain the same with Founder and CEO Jonah Peretti and CFO Felicia DellaFortuna keeping their positions along with other executive team members.
In addition, Adam Rothstein, Executive Chairman of 890 Fifth Avenue Partners and Greg Coleman, an advisor to 890 Fifth Avenue Partners and former BuzzFeed President, will join BuzzFeed’s Board of Directors. Two additional board members will also be announced in the coming months, BuzzFeed added.
As part of the merger deal, BuzzFeed will also acquire global youth entertainment company Complex Networks for $300 million. The acquisition, funded by $200 million in cash and $100 million of equity in Buzzfeed, will take place along side the main merger deal with 890 Fifth Avenue Partners. The acquisition is expected to add to BuzzFeed’s revenue growth.
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