As BuzzFeed was exploring plans to go public earlier this year, it ran into a problem: Executives at the digital-media outlet’s biggest investor, NBCUniversal, thought they were getting a bad deal, The Wall Street Journal reports.
At issue was BuzzFeed’s plan to merge with SPAC 890 5th Avenue Partners. Executives at NBCUniversal were frustrated that the deal valued BuzzFeed at $1.5 billion, below the level where it had invested years earlier, people familiar with the situation told the Journal. The unit of Comcast was facing a substantial loss on the deal, while earlier investors would come out ahead.
NBCUniversal ultimately approved the deal after reaching an agreement in April with BuzzFeed CEO that guaranteed it concessions while still leaving it facing a loss of roughly $100 million.