Buzzfeed Means Business

For weeks, the media’s been buzzing about BuzzFeed’s $200M raise to purchase Complex Networks.  Everyone thought the company would use debt for the acquisition, but there’s been a change of plans.  

Now, BuzzFeed will go public via the 890 5th Avenue SPAC, using proceeds from $ENFA to acquire Complex. The transaction adds another brand to BuzzFeed’s parent company, which recently acquired Huffington Post from Verizon.

BuzzFeed means business. 🤝 The company aims to compete with Big Tech for advertising dollars… but there’s no guarantee this plan will work.  After all, so many advertisers already rely on Google, Facebook, and Amazon.

Weeks before the Buzzfeed/SPAC rumors, it was rumored that Vice Media would go public via 7GC & Co Holdings. In January, Group Nine Media (owner of Thrillist, NowThis, and PopSugar) announced its own SPAC launch to fuel the hunt for acquisitions. 

Buzzfeed and Vice Media have a lot in common. Both raised money from media conglomerates, failed to hit revenue estimates, and both have conducted mega layoffs. 

To make matters worse, these companies tend towards unprofitability and stagnation with (usually) low multiples. Investors don’t exactly like that, but who knows… big moves like this could change the game. 🤷