BuzzFeed, an American digital company, is particularly known for its viral content and journalism. BuzzFeed will go public today after it has raised less money than expected. BuzzFeed said, in a press release, that it had finalized the company’s merging with 890 5th Avenue Partners. This merging aims to raise funds through an initial public offering to acquire an existing company.
Shares of Buzzfeed are expected to start trading on the Nasdaq. Its ticket will be named as “BZFD”.
Buzzfeed targeted to be valued $1.5 billion on Wall Street but it has raised only $16 million from the SPAC deal.
BuzzFeed has said that their 890 5th Avenue Partners held nearly $288 million in cash. But eventually the majority of investors withdrew their money. The company also raised $150 million in debt financing.
BuzzFeed was created in 2006 and it instantly got popular for its lists and topical quizzes. Then the company widen itself by offering a Pulitzer Prize-winning news division, a YouTube channel and several podcasts.
But, Buzzfeed’s public listing comes after employees at the news section staged a 24-hour walkout. They protested against the company’s failure to offer certain contract conditions. The company has failed to fulfil their promises of a salary base of $50,000, after nearly two years of negotiations.