US news portal BuzzFeed is on the verge of going public through a merger with SPAC (a specialized structure for targeted mergers and acquisitions). The Wall Street Journal (WSJ) wrote about this on Wednesday, June 23, citing sources familiar with the situation. According to them, BuzzFeed CEO John Peretti may announce a merger with SPAC under the name 890 5th Avenue Partners this week.
According to the WSJ, going public can give the management of BuzzFeed, which was created in 2006 and has since become one of the most popular news portals, money to acquire competitors. So, earlier it was reported about the intention of BuzzFeed to buy the digital publishing house Complex Networks. Earlier this year, BuzzFeed acquired the HuffPost edition. There is information about the intention of the portal to acquire other publications. BuzzFeed peaked in popularity in the mid-2010s, when the portal was in the center of attention of large corporations and attracted significant investments. However, since then, the focus of attention of major players has largely shifted from such resources to popular streaming video services among young users.
BuzzFeed will become the next company to go public in recent years through a merger with SPAC, that is, a specialized structure for targeted mergers and acquisitions. In fact, this is a shell company that was previously created by investors with the aim of merging with an enterprise that wants to go public: SPAC conducts an IPO on some stock exchange, and then looks for a company to merge.