Buzzfeed is a US media company listed on Wall Street. The company announced this on Thursday. The company behind the news website of the same name is valued at $1.5 billion on the New York Stock Exchange.
The IPO takes place via a so-called special purpose acquisition company (spac), an investment vehicle into which investors put money in order to subsequently buy a company and put it on the stock exchange. The advantage of a spac is that money can be raised much faster than with a regular IPO and that less strict requirements are imposed on the financial substantiation of the listing on the stock exchange. In the case of Buzzfeed, the company has merged with the empty stock shell 890 5th Avenue Partners. Rumors had been circulating since March that Buzzfeed was preparing an IPO.
Buzzfeed was founded in late 2006 and became known to the general public with online quizzes and lists of remarkable or funny facts that often went viral. Later, the design of the website became more serious and the site increasingly focused on more in-depth journalism. A few weeks ago, the news website won a Pulitzer Prize for its own investigative story.