BuzzFeed Targets $1.5B Value In Public Special-Purpose Merge

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buzzfeed offices
"As we grow, how can we maintain a culture that can still be entrepreneurial?" BuzzFeed CEO Jonah Peretti asked. Pictured: BuzzFeed employees work at the website's headquarters in New York City, Jan. 9, 2014.

BuzzFeed, the popular tech-powered media company known for its digital content geared toward young Americans, announced a public merger Thursday with 890 Fifth Avenue Partners (ENFA), a special purpose acquisition company (SPAC).

Buzzfeed is targeting a $1.5 billion total value from the merger with the Delaware-based shell company 890 Fifth Avenue Partners, which specializes in tech, media, and telecom purposes. 

BuzzFeed will acquire Complex Networks for $300 million. The well-known global youth entertainment and a digital publisher with a massive reach in streetwear, style, food, music, sneakers, and culture. 

The deal is made up of $200 million in cash and $100 million of equity in BuzzFeed, the company said. 

BuzzFeed founder and CEO Jonah Peretti said the merger with Complex Networks will “immediately accelerate BuzzFeed’s revenue growth.”

“The acquisition of Complex Networks will expand our reach into new audiences, complement our entertainment, news, and lifestyle brands, and open the door to even more revenue opportunities," Peretti said.

The transaction will include an additional $150 million in convertible note financing led by Redwood Capital Management, including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial LP. 

The parent name will still be known as BuzzFeed Inc. on the public market, and the ticker symbol is expected to be BZFD.

Peretti and CFO Felicia DellaFortuna will continue their roles along with other executive team members. They will be joined by Adam Rothstein, Executive Chairman of 890 Fifth Avenue, and Greg Coleman, an advisor to 890 Fifth Avenue. 

“BuzzFeed is now the undeniable leader for the next generation of media. We’ve built a slate of essential brands, loved by the most diverse, engaged, and loyal audience on the Internet,” Peretti said in a statement.

“With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business. I am thrilled to have Adam join our team as we work towards becoming the world’s preeminent digital media company," Peretti said.

The moves comes after Peretti helped BuzzFeed’s acquire HuffPost in November.

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