BuzzFeed, a popular technology media company known for its digital content for young Americans, announced on Thursday a public merger with 890 Fifth Avenue Partners (ENFA), A special purpose acquisition company (SPAC).
Buzzfeed’s goal is to obtain a total value of $1.5 billion through the merger with 890 Fifth Avenue Partners, a shell company headquartered in Delaware, which specializes in technology, media and telecommunications.
BuzzFeed will acquire Complex Networks for US$300 million. A well-known global youth entertainment company and digital publisher with extensive influence in the fields of streetwear, fashion, food, music, sports shoes and culture.
The company said the transaction consists of $200 million in cash and $100 million in BuzzFeed equity.
BuzzFeed founder and CEO Jonah Peretti stated that the merger with Complex Networks will “immediately accelerate BuzzFeed’s revenue growth.”
“The acquisition of Complex Networks will expand our impact on new audiences, complement our entertainment, news and lifestyle brands, and open the door to more revenue opportunities,” Peretti said.
The transaction will include an additional US$150 million in convertible notes financing led by Redwood Capital Management, including CrossingBridge Advisors, Cohanzick Management and Silver Rock Financial LP.
In the open market, the name of the parent company will still be called BuzzFeed Inc., and the stock code is expected to be BZFD.
Peretti and CFO Felicia DellaFortuna will continue their roles with other executive team members. Adam Rothstein, executive chairman of 890 Fifth Avenue, and Greg Coleman, consultant of 890 Fifth Avenue, will join them.
“BuzzFeed is now the undeniable leader of the next generation of media. We have established a series of important brands that are loved by the most diverse, active and loyal audience on the Internet,” Peretti said in a statement.
BuzzFeed announced plans to merge and go public through SPAC, with a target valuation of US$1.5B, and to acquire digital publisher Complex Networks (Jessica Bursztynsky/CNBC) for US$300 million https://t.co/KzTVBDQyyv #biz #feedly
— Chris Brogan/Executive Strategist (@chrisbrogan) June 24, 2021
“Through today’s announcement, we will take the next step in the development of BuzzFeed and bring capital and additional experience to our business. As we strive to become a world-class digital media company, I am very happy that Adam has joined us Team,” Peretti said.
This move happened after Peretti helped BuzzFeed acquire HuffPost in November.