BuzzFeed Agrees to $1.5 Billion SPAC Merger

Internet media, news, and entertainment platform BuzzFeed announced it is going public through a merger with a special acquisition purpose company (SPAC) 890 Fifth Avenue Partners Inc. (NASDAQ: ENFA), in a business deal that is expected to value the combined company at $1.5 billion.

The SPAC has $288 million in its trust, while BuzzFeed raised roughly $150 million in convertible note funding led by Redwood Capital Management, including participation from CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial LP.

“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,” said Jonah Peretti, BuzzFeed’s Founder and CEO, who will retain his position in the combined company.

“With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business. I am thrilled to have Adam join our team as we work towards becoming the world’s preeminent digital media company.”

In addition to the deal, BuzzFeed will also buy the leading global youth network Complex Networks, particularly popular among millennials and Gen Z.

Peretti said that “the acquisition of Complex Networks will expand our reach into new audiences, complement our entertainment, news, and lifestyle brands, and open the door to even more revenue opportunities.”

The $300 buyout of Complex Networks consists of $200 million in cash and $100 million of equity in BuzzFeed, and is expected to instantly expedite BuzzFeed’s revenue growth through synergies and monetization opportunities, and reinforce the company’s position as the leading youth digital media platform.

“We looked at many different media businesses but none had the kind of brands, digital assets or business model that BuzzFeed does and which we believe can achieve the kind of meaningful growth and returns for our investors. Jonah and his team have built an incredible business. They are resilient, smart, and innovative which will be important as we move ahead,” Adam Rothstein, Executive Chairman of 890 Fifth Avenue Partners Inc., said.

The deal is expected to be completed in the fourth quarter of this year, subject to customary closing conditions, including the approval of the SPAC’s stockholders.

After the deal is closed, BuzzFeed will debut as the publicly-listed company under the ticker symbol “BZFD”.

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