The digital media industry has reached a strategic crossroads, CNBC reports.
Earlier this year, SPACs appeared to be the long-awaited savior of digital media companies. BuzzFeed, Vice, Bustle Digital Group and others with venture capital backing had a plan to pay back investors with publicly traded stock. A few of the largest players would go public first, and those companies would then roll up smaller peers, paying with equity to get deals done. The end result would be a handful of larger digital media entities with enough global scale to survive.
But when the SEC cracked down on SPAC accounting practices in April, the booming market came to a near standstill. Read more.
