BuzzFeed’s first day as a public company is a big test
Executives at other digital media companies were closely monitoring BuzzFeed’s entry into the public market and will surely track its results now that it has to reveal its financial results to the world on a quarterly basis.
Vice Media, the youth culture and news publisher, was in talks this year with an acquisition company, 7GC, to merge and go public, the New York Times reported. Vice had been forced to pay private equity giant TPG, one of its investors. But Vice suspended his IPO plans, announcing in September that he had raised $ 135 million in investor funding, which would be used for “his growth initiatives” and for mergers and acquisitions.
A person familiar with the plans said Vice decided not to make a deal with an acquisition company because many investors were much more skeptical of such deals after regulators and financial experts raised concerns. questions about the credibility of companies that had gone public with the help of a PSPC.
Vox Media, which bought New York magazine and its websites in 2019, is still considering a possible merger of PSPC, The Information reported last month. The company recently bought Punch, a cocktails site.
Bustle Digital Group plans to go public next year, Bryan Goldberg, its chief executive, said in an interview on Monday. The company, which publishes the women’s website Bustle, has taken over other outlets in recent years, including Gawker and Mic.
“The mere fact that BuzzFeed is in the public markets is a big step for the industry,” said Goldberg, speaking before the share price fell. “But the first hour of trading wasn’t just a positive surprise, it was a ‘spit your coffee’ surprise.
“BuzzFeed and all the other digital media companies have spent the last three years really improving our business and really figuring out how to create value for customers and users,” added Mr. Goldberg. “And I think a lot of us think that with renewed optimism and hopefully better access to capital, we can continue to grow without too much opposition.”