OMG! Is BuzzFeed Really a $1.5 Billion Tech Company? | Analysis

The company is seeking $200 million on a valuation that doesn't apply to content companies

BuzzFeed, the digital media company founded on cat videos and which just days ago won its first Pulitzer Prize, announced plans to go public via a SPAC on Thursday -- and in one neat move, redefined itself as a tech company rather than a content company.

The reason for that was simple and clearly laid out in its investor presentation: BuzzFeed is seeking a $1.5 billion valuation, based on a projected profit of $117 million by the end of 2022 that will mostly come from e-commerce. The valuation represents a multiple of 13 times the profit, which is in line with a tech company but is way more aggressive than what a 15-year-old content company would do.

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Lindsey Ellefson

Media reporter • lindsey.ellefson@thewrap.com • Twitter: @ellefs0n

Antoinette Siu

Media and Tech Reporter • antoinette.siu@thewrap.com • Twitter: @antoinettesiu