BuzzFeed shares fell in their first day of trading, a sign investors are wary of the digital media company after a shaky lead-up to its public debut.
The stock, which trades on the Nasdaq under the ticker symbol BZFD, was down 12 per cent at 11:15am in New York, after surging earlier in the day. Shares had closed at $9.62 on Friday.
Founded in 2006, it is the first of today's large online publishers to go public. BuzzFeed, originally known for its topical quizzes, endured a rocky start before hitting the stock market.
In a press release on Friday, BuzzFeed said it had finalised a merger with 890 5th Avenue Partners, a special purpose acquisition company (SPAC), which aims to raise funds through an initial public offering to acquire an existing company.
The company planned to raise $288 million in cash through the merger, but most of the SPAC investors chose not to participate in the transaction.
That’s left BuzzFeed chief executive Jonah Peretti with just $16 million of the originally intended funds.
As of last week, BuzzFeed is worth $1.5bn - a drop-off from the $1.7bn valuation investors gave it four years ago, according to Vox Media.
Mr Peretti said he expected investors would pull their money out because the market for SPACs has cooled.
It “won’t meaningfully change our strategy,” he said, noting that BuzzFeed will still have money raised from a $150 million convertible note that’s part of the transaction. As a public company, BuzzFeed can also use its stock as a currency to buy other businesses, he said.
Mr Peretti said BuzzFeed likely would have done an IPO if the pandemic hadn’t disrupted its business. He called the SPAC “a means to an end.”
Last month, BuzzFeed said its third-quarter revenue grew 20 per cent, helped by an improvement in advertisement sales. But it also saw a slowdown in sales of goods, citing supply chain issues, and it expects that continue in the fourth quarter.
BuzzFeed sells, among other things, a line of cookware at Walmart named after its food brand Tasty. The business is seen as a way for BuzzFeed to rely less on advertising.
BuzzFeed's public debut comes a week after its employees staged a walk-out to protest what they claim is the company's failure to agree to a fair labour contract.
As part of the 24-hour walkout, union members for the company's Pulitzer-prize winning news division demanded an increase in wages and in creative control.
“It’s a negotiation and it’s hard and there’s disagreement around points,” Mr Peretti said of the walkout. “The bargaining table is where they wanted to have those conversations, so that’s where we’re having them.”
The union walk-out was planned on the same day BuzzFeed finalised a deal to acquire Complex Networks, a media company jointly run by Verizon and Hearst.
"We've been bargaining our contract for almost two years, but BuzzFeed won't budge on critical issues like wages — all while preparing to go public and make executives even richer," the news union tweeted.
Negotiations are expected to resume on Tuesday.
Agencies contributed to this report
UAE currency: the story behind the money in your pockets
The specs
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Power: 320bhp
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Tell-tale signs of burnout
- loss of confidence and appetite
- irritability and emotional outbursts
- sadness
- persistent physical ailments such as headaches, frequent infections and fatigue
- substance abuse, such as smoking or drinking more
- impaired judgement
- excessive and continuous worrying
- irregular sleep patterns
Tips to help overcome burnout
Acknowledge how you are feeling by listening to your warning signs. Set boundaries and learn to say ‘no’
Do activities that you want to do as well as things you have to do
Undertake at least 30 minutes of exercise per day. It releases an abundance of feel-good hormones
Find your form of relaxation and make time for it each day e.g. soothing music, reading or mindful meditation
Sleep and wake at the same time every day, even if your sleep pattern was disrupted. Without enough sleep condition such as stress, anxiety and depression can thrive.
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Top financial tips for graduates
Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:
1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.
2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.
3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.
4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
