SPACs are another hot topic of the last year and the newest addition to the ever-growing SPAC list is the often controversial BuzzFeed. In case you don’t know what BuzzFeed is, it is an American Internet media, news, and entertainment company with a focus on digital media. Based in New York City, BuzzFeed was founded in 2006 and focuses on tracking viral content. BuzzFeed is going to go public via a merger with a publicly traded SPAC or “special purpose acquisition company”. In case you are interested in investing in BuzzFeed, here are some key financials of the company. According to CNBC: BuzzFeed generated $321 million in annual revenue and $31 million in adjusted earnings before interest, taxes, depreciation, and amortization in 2020, in large part due to its e-commerce business. The company is estimating $654 million in revenue in 2022 and $117 million in adjusted EBITDA.
So why a SPAC? Well, the move is strategic as it helps BuzzFeed enhance their ability to acquire other companies, something which they have been doing for a while now. For example, BuzzFeed plans to acquire Complex News, a digital publisher that specializes in streetwear, music, and culture, for $300 million. Once public, BuzzFeed will trade under the ticker symbol “BZFD” on the Nasdaq index. What do you think about Buzzfeed going public via SPAC? And would you consider buying the stock?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.