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BuzzFeed Reportedly Close to Pact to Go Public Via SPAC

Online-media firm BuzzFeed seeks to go public via a SPAC as part of plans to expand by buying Internet media rivals, reports say.

Online media outlet BuzzFeed is close to agreeing to go public via special-purpose-acquisition company 890 5th Avenue Partners, according to media reports.

Knowledgeable sources discussed the matter with The Wall Street Journal and New York Times.

And The Information reported that a deal would be part of BuzzFeed’s plans to buy Internet media competitors, including Complex Networks. The merger would give BuzzFeed, led by Founder Jonah Peretti, the money to make purchases.

A deal could come as soon as this week, sources told the Journal and the Times. 890 5th Avenue is led by the investor Adam Rothstein.

BuzzFeed wants to get bigger so it can compete for Internet advertising against Alphabet's  (GOOGL) - Get Report Google,  (AMZN) - Get Report and Facebook  (FB) - Get Report, The Journal reports.

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In November BuzzFeed bought HuffPost, which Peretti helped found.

BuzzFeed won its first Pulitzer Prize this month “for a series of clear and compelling stories that used satellite imagery and architectural expertise, as well as interviews with two dozen former prisoners, to identify a vast new infrastructure built by the Chinese government for the mass detention of Muslims,” the Pulitzer board said.

In other media/entertainment news, Amazon’s proposed $8.45 billion deal to buy TV/movie studio MGM will be reviewed by the Federal Trade Commission, knowledgeable sources told The Journal.

Amazon is seeking to strengthen the content of its Prime Video streaming service in the deal.

The FTC advocated for review authority on this transaction because it already has begun a far-flung antitrust query into the Seattle tech and online-retail giant's business practices, the sources said.