BuzzFeed is said to be participating in debates to make the SPAC public

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BuzzFeed Inc., the digital media outlet founded in 2006, is in talks to make itself public through a merger with 890 5th Avenue Partners Inc., a special-purpose acquisition company, according to people with knowledge of the issue.

Once public, the company can use its currency to target future acquisitions, said one of the people, who asked for anonymity because the talks are private. A transaction value could not be learned immediately. As with any agreement that has not been finalized, the terms may be changed or the conversations may be undone.

Representatives from BuzzFeed and 890 5th Avenue did not immediately respond to requests for comment.

Talks about the deal follow a tumultuous year for BuzzFeed, which fired employees during the pandemic and loss of revenue from advertising and live events. The company’s balance sheet had improved last November, when it occurred agreed to buy the HuffPost online news service Verizon Communications Inc. But now he is in another round of dismissalas it separates some employees from this acquisition.

As part of the HuffPost deal, Verizon acquired a minority stake in BuzzFeed that valued the company at about $ 1.7 billion. This is roughly the same as BuzzFeed’s valuation in 2016, when Comcast Corp.’s NBCUniversal. invested $ 200 million in the business, said at the time a person with knowledge of the matter.