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BuzzFeed shares slump in debut after troubled SPAC merger -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Buzzfeed employees at New York’s headquarters January 9, 2014 REUTERS/Brendan McDermid/File Photo

(Reuters] BuzzFeed Inc’s shares fell 13% Monday after they completed a $1.5 billion blank check merger. This was because a large number of investors pulled out of their investments.

BuzzFeed, a New York company, opened at $14.95. It then rose to $14.77. It was 11.16 am ET. ET the shares changed hands for $8.36 each

BuzzFeed announced last week it would get only 6% of $16 million from the trust fund of blank-check company, after its shareholders had redeemed most of their stakes.

890 Fifth Avenue Partners Inc was the publicly traded acquisition vehicle that is named after the fictional Avengers house. It raised $287.5 Million in January’s public offering.

Shares are typically sold at $10 per piece by special purpose acquisition companies. The cash is then put in trust accounts and used to search for the right company to purchase. The shareholders have the option to cash out their shares or redeem them.

BuzzFeed was established in 2006 by John Johnson & Jonah Peretti. The site produces videos, news, and quizzes online.

In 2016, it split its entertainment and news businesses. Comcast Corp (NASDAQ:), NBC Universal, which owns the company invested $200m in the business. The company’s value was $1.7 billion.

BuzzFeed purchased HuffPost news website from Verizon Communications Inc (NYSE:), acquired Complex Networks, a youth entertainment business from Hearst Corp. and Verizon in June of last year.

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