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BuzzFeed to Go Public in SPAC Merger at $1.5 Billion Valuation

Jonah Peretti’s media company plans to use new funds to acquire Complex Networks for $300 million

BuzzFeed on Thursday announced plans to go public following a merger with the special-person acquisition company 890 Fifth Avenue Partners Inc. When the deal closes, BuzzFeed’s implied valuation will be $1.5 billion.

With the funding from the merger, the company also announced plans to acquire Complex Networks for $300 million — $200 million in cash and $100 million of equity.

Proceeds from the merger will include up to $288 million in trust and another $150 million in convertible note financing, according to the company.

Jonah Peretti will remain as CEO and Felicia DellaFortuna as CFO of the company, which will trade under the ticker symbol “BZFD” on the Nasdaq.

“BuzzFeed is now the undeniable leader for the next generation of media. We’ve built a slate of essential brands, loved by the most diverse, engaged, and loyal audience on the Internet,” BuzzFeed founder and CEO Jonah Peretti said in the Thursday announcement. “With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business.”

At the end of last year, BuzzFeed paid an undisclosed amount to Verizon Media for HuffPost, another media brand with strong appeal for younger audiences.

BuzzFeed reported $321 million in revenue and $31 million in adjusted EBITDA in 2020. According to a recent investor presentation, the company projects revenues of $654 million in 2022 and $117 million in adjusted EBITDA.

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