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Investment Opportunities

Buzzfeed SPAC IPO: All About BZFD Stock

The Buzzfeed SPAC IPO is coming to the market. The company is going public through a merger with 890 Fifth Avenue Partners. Here’s the latest information…

Buzzfeed SPAC IPO: About the Business

BuzzFeed IPO

BuzzFeed is the world’s leading independent digital media company. The company has its headquarters in New York with an entertainment studio in Los Angeles. From its start in 2006, BuzzFeed has been one of the most influential digital media companies. The company has built a reputation for its funny memes, listicles and other interesting content.

It has a portfolio of many platforms and networks aimed at millennials and Gen-Zers. BuzzFeed’s cross-platform network includes…

  • BuzzFeed Originals
  • BuzzFeed Media Brands, which comprises a portfolio of brands including…
    • Nifty
    • Goodful
    • As/Is
    • Tasty, the world’s largest social food network
  • BuzzFeed News
  • HuffPost
  • BuzzFeed Commerce

The platform is known for its massive scale audience engagement. Across the globe, BuzzFeed’s content reaches hundreds of millions of people.

After all, the company’s latest funding round in 2016 landed the company a $1.7 billion valuation. So, let’s take a look at the company’s finances…

Buzzfeed IPO: A Look at the Finances

In the wake of BuzzFeed’s IPO news, the company released an investor presentation that predicted aggressive revenue and profit growth by 2024. This includes revenue predictions of more than $1 billion. So, let’s look at the company’s past financial highlights…

Detailed financial information is in the BuzzFeed SEC filings, allowing you to gain more insight into the company’s finances. Furthermore, if you’re in the market for BZFD stock, let’s look at the details.

BuzzFeed highlights some key information for investors. The company’s financial highlights are as follows…

Total Revenue: BuzzFeed reported growing revenue. For the six months ended June 30, 2020, BuzzFeed recorded $123 million in total revenue. Revenue grew to over $161 million for the six months ended June 30, 2021. BuzzFeed reported $321 million in annual revenue for the year 2021. The company is estimating $654 million in revenue in 2022.

Net Income (Loss): BuzzFeed has reported losses recently. For the six months ended June 30, 2020, BuzzFeed recorded $19 million in net losses. However, losses narrowed to $12.1 million for the six months ended June 30, 2021.

Loss from Operations: BuzzFeed’s operating losses have narrowed. The company recorded $20.5 million in operating losses for the six months ended June 2020. For the six months ended June 2021, BuzzFeed’s losses went down to $17 million.

Adjusted EBITDA: BuzzFeed’s EBITDA has grown. For the six months ended June 2020, the company’s adjusted EBITDA was -$10.7 million. However, Buzzfeed recorded an adjusted EBITDA of $1.3 million for the six months ended June 2021. The company recorded $31 million in adjusted EBITDA for 2020. BuzzFeed is estimating $117 in EBITDA in 2022.

The company behind BZFD stock announced it will acquire Complex Network as part of the BuzzFeed IPO. Let’s take a deeper look…

BuzzFeed SPAC IPO Includes the Acquisition of Complex Network

In June, co-founder and CEO Jonah Peretti announced plans to pursue a BuzzFeed IPO via a merger with SPAC 890 Fifth Avenue Partners (Nasdaq: ENFA). As part of the merger, BuzzFeed plans to acquire Complex Networks for $300 million. The company is a digital publisher specializing in streetwear, music and culture. A cash payment of $200 million and an equity stake of $100 million from BuzzFeed are part of the deal.

At the time, Peretti told CNBC’s TechCheck that the SPAC could help strengthen the company’s position to acquire other digital media companies. A Buzzfeed SPAC IPO will help the company go public faster than a traditional IPO. Additionally, it would give the company the ability to simultaneously merge with Complex Networks.

CEO Peretti commented on the acquisition of Complex Networks…

We remain excited about the pending acquisition of Complex Networks and look forward to working with its talented team to accelerate their commerce and advertising revenue growth while allowing BuzzFeed to benefit from their complementary audience and business profile.

According to an unnamed source familiar with the matter, the SPAC merger and $300 million acquisition could close by the end of the day Friday if all goes well. Shareholders of 890 Fifth Avenue Partners voted on Thursday to approve the SPAC merger.

BuzzFeed is targeting a $1.5 billion valuation upon combining with 890 Fifth Avenue Partners. The company could begin trading as soon as December 6. Here’s the verdict on the Buzzfeed IPO…

Buzzfeed IPO Set to Trade December 6

Shareholders of 890 5th Avenue Partners approved the deal with BuzzFeed, but not without a cost. According to Wall Street Journal, investors appear to have pulled out “the bulk of their money” from the SPAC.

Buzzfeed originally planned to fetch $288 million held by the SPAC. However, after 94.4% of shareholders of the SPAC redeemed their shares, the company will only receive $16.2 million of the proceeds, or 6%.

Wall Street Journal cited people with knowledge of the development. The withdrawals will substantially reduce the digital media outlet’s cash on hand. In an SEC filing following the vote, Buzzfeed stated it plans to raise $166.2 million in the deal. This involves $150 million coming from convertible debt financing and $16.2 million from investor cash.

890 5th Avenue Partners currently trades on the Nasdaq exchange under the ticker symbol ENFA. The newly public company will operate as BuzzFeed Inc. following the merger with BuzzFeed. It will trade on the Nasdaq exchange under the ticker BZFD.

According to the company, its management team remains intact after the IPO, with Peretti remaining CEO and Felicia DellaFortuna acting as CFO.

You can learn more about going public through a SPAC IPO here.

The BuzzFeed SPAC IPO hasn’t hit the market yet. However, BZFD stock will begin trading on December 6.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. Furthermore, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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