Skip to main content

BuzzFeed Stock Wavers on First Day of Trading

BuzzFeed is reportedly set to name Michael Del Nin, former co-CEO of European TV broadcaster Central European Media Enterprises, as president.

Shares of news publisher BuzzFeed  (BZFD) - Get BuzzFeed Report wavered in the prominent digital-media company's first day of trading on the Nasdaq.

Shares of BuzzFeed jumped as much as 45% on the Nasdaq at the start of trading on Monday morning. At last check they were off 5.7% at $9.07.

“The big thing digital media needs for consolidation is a strong public company and we wanted to be the first,” BuzzFeed Founder and Chief Executive Jonah Peretti told Bloomberg.

BuzzFeed is set to name Michael Del Nin, former co-chief executive of European television broadcaster Central European Media Enterprises, as its new president, the report added.

Last week, BuzzFeed raised $16.2 million via its SPAC merger partner, 890 5th Avenue Partners, compared with the $288 million it had hoped to raise.

Most of 890 5th Avenue Partners' investors declined to participate in the BuzzFeed deal, Bloomberg reported.

"Market dynamics have led to higher redemptions as the SPAC market has developed," a person familiar with the matter told TheStreet on condition of anonymity.

890 5th Avenue Partners' stockholders approved the proposal on Thursday.

TheStreet Recommends

BuzzFeed received a total of $166.2 million through a combination of 890 5th Avenue Partners proceeds and fully committed convertible notes.

The deal, which valued BuzzFeed at $1.5 billion, closed on Friday.

BuzzFeed had said in June 2021 when it first announced its market listing that its $150 million in convertible-note financing would be led by investors from Redwood Capital Management, including CrossingBridge Advisors, Cohanzick Management to support the deal.

890 5th Avenue Partners is led by Executive Chairman Adam Rothstein and Chief Executive Emiliano Calemzuk.

Rothstein will sit on BuzzFeed’s board along with the angel investor Anjula Acharia and former BuzzFeed President Greg Coleman.

BuzzFeed acquired telecom giant Verizon Media's digital media brand HuffPost in a stock deal in November last year.

Media publishers Forbes, Vox and Vice are also eyeing market listings through the SPAC route.

SPACs are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.