BuzzFeed to list in New York via SPAC with US$1.5bn valuation

BuzzFeed Inc. (BZFD) is to list in New York via a Special Purpose Acquisition Company (SPAC) that will value the media group at US$1.5bn. The online paper will merge with 890 Fifth Avenue Partners Inc. (NASDAQ:ENFA), which has US$288mln in trust, while Redwood Capital Management will provide a US$150mln convertible note. READ: SPACs and blank-check companies - a two-minute explainer The millennial- and Gen Z- focused digital platform, which already owns newsgroup HuffPost and lifestyle brand Tasty, also announced an agreement with Hearst and Verizon to acquire youth entertainment firm Complex Networks for US$300mln. Of these, US$200mln will be paid in cash and the remainder in shares. BuzzFeed’s management team will remain in place, with founder and chief executive Jonah Peretti and chief financial officer Felicia DellaFortuna continuing in their roles. Adam Rothstein, executive chairman of 890 Fifth Avenue, and Greg Coleman, an advisor to 890 Fifth Avenue and former BuzzFeed president, will join the board alongside an extra two directors yet to be announced. BuzzFeed said that with the addition of Complex Networks it will be “even better-positioned to thrive in an age of media consolidation”. “We’ve built a slate of essential brands, loved by the most diverse, engaged, and loyal audience on the Internet,” Peretti said. “With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business.” Founded in 2006, BuzzFeed has 38mln monthly unique visitors across its portfolio, with 806mln monthly minutes spent on the websites. It’s targeting an annual growth of 26% with growing underlying earnings (EBITDA) margin to 2024. Initially known for its listicles and quizzes, it has branched into various kinds of journalism and won a Pulitzer prize this year for a series on China’s Uyghur detention camps. It merged with HuffPost, another award-winning organisation, last November.