The Strategist

BuzzFeed plans to go public via SPAC merger

06/25/2021 - 03:26

US news portal BuzzFeed is close to becoming a public company through a merger with SPAC (a special purpose vehicle for targeted mergers and acquisitions), The Wall Street Journal (WSJ) reported, citing sources familiar with the situation.

Matt Haughey
Matt Haughey
According to them, BuzzFeed CEO Jonah Peretti may announce a merger with SPAC under the name 890 5th Avenue Partners as early as this week.

The move could give the management of BuzzFeed, which was founded in 2006 and has since become one of the most popular news portals, money to buy competitors, the WSJ said. For example, it was previously reported that BuzzFeed intended to buy digital publisher Complex Networks. 

Earlier this year BuzzFeed acquired HuffPost. There are reports of the portal's intention to acquire other publications. BuzzFeed peaked in popularity in the mid-2010s, when it was the focus of major corporations and attracted significant investment. Since then, however, the focus of big players has largely shifted from such resources to video streaming services popular among younger users.

BuzzFeed will be the latest company to go public via a merger with SPAC, which is a specialist targeted merger and acquisition vehicle. In essence, it is a shell company that was set up in advance by investors to merge with a company that wants to go public: SPAC conducts an IPO on some stock exchange and then looks for a company to merge with.