Digital media company BuzzFeed announced today that it will merge with 890 5th Avenue Partners. If approved, BuzzFeed’s implied valuation at deal-closing will be $1.5 billion.
BuzzFeed also announced that it plans to acquire Complex Networks – a global youth entertainment company – from Hearst and Verizon. The $300 million acquisition of Complex – consisting of $200 million in cash and $100M of BuzzFeed equity – is expected to close in the fourth quarter after the SPAC merger.
890 5th Avenue Partners has $288 million in trust. The merger transaction includes an additional $150 million in convertible note financing led by Redwood Capital Management and including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial.
Though the origin of the SPAC’s name has not been confirmed by management, in the realm of superheroes the fictitious address 890 5th Avenue in Manhattan is the headquarters of The Avengers.
If approved by stockholders, the post-merger parent company will be known as BuzzFeed and would list on an exchange under BZFD.
BuzzFeed News won a Pulitzer Prize this month for a series of articles that used satellite images, 3D architectural models, and in-person interviews to expose China’s vast infrastructure for detaining hundreds of thousands of Muslims in its Xinjiang region. This is the digital outlet’s first win since it was founded in 2012. Read more.