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BuzzFeed SPAC Merger: What to Know About SPNV Stock Amid Rumors of BuzzFeed Deal

Is a BuzzFeed SPAC merger on the way? According to rumors on Wall Street, the media and entertainment company is in talks to come public via Supernova Partners Acquisition (NYSE:SPNV). Ahead of any confirmation, what do you need to know about SPNV stock? And what would a publicly traded BuzzFeed even look like?

A BuzzFeed sign in Venice, California.

Source: 1000Photography / Shutterstock.com

Most investors are likely familiar with BuzzFeed, the media, news and entertainment company. Since its founding in 2006, the company has built a reputation following and creating viral content. Now, it looks like a BuzzFeed SPAC merger could create the next viral deal on Wall Street.

What do I mean? Well, according to a recent report, BuzzFeed has held talks with at least one blank-check company. This comes as the media business looks to enter the public markets and spread its wings. Importantly, the blank-check company in question is Supernova Partners Acquisition, the creation of Spencer Rascoff.

As the story goes, Rascoff took SPNV stock public in October 2020. At the time, the founder of Zillow (NASDAQ:Z) and Hotwire said he wanted to find a company that benefits from shifts in tech. After raising $350 million in an upsized initial public offering, Supernova Partners has flown under the radar. However, that could all be changing thanks to some SPNV stock SPAC rumors.

Investors know BuzzFeed. They also likely know that the media company has struggled thanks to a slump in advertising revenue. The parent of its own BuzzFeed properties, Tasty and HuffPost still stands out, though. That is because BuzzFeed has raised nearly $500 million.

So with a potential BuzzFeed SPAC merger on the horizon, what should investors do with SPNV stock?

SPNV Stock and the BuzzFeed SPAC Merger

Ahead of a potential BuzzFeed SPAC merger, fans of SPNV stock should first consider the financial picture. BuzzFeed, like its peers, is struggling. However, CEO Jonah Peretti has said that the company continues to pivot as the media landscape changes. He also said that in 2020, his company was on track toward profitability. With investors likely looking for an exit, a SPAC deal could provide some cash and boost BuzzFeed toward further growth.

Additionally, investors should consider that SPNV stock is not the only potential digital media SPAC. Group Nine Media, the company behind Thrillist and NowThis has formed its own special purpose acquisition company. Bustle, another rival, is also in talks to go public.

But why now for BuzzFeed? Should it wait for Covid-19 headwinds to fade? Despite falling ad revenue, it seems that the digital media company is doing anything but hiding in the shadows. In the middle of the pandemic, it announced its acquisition of HuffPost from Verizon (NYSE:VZ). That deal alone further stokes the BuzzFeed SPAC fire. Essentially, as Business Insider tells it, well-known digital media companies are perfect SPAC targets. As investors dive into the space, BuzzFeed, Bustle and Group Nine likely see a shot at future growth.

For SPNV stock, that means it may not end up with a unique focus. However, BuzzFeed still stands out. With the HuffPost acquisition and funding behind it, investors should pay close attention to reverse merger rumors. Once it comes public, BuzzFeed could snap up even more digital media properties.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 

Article printed from InvestorPlace Media, https://investorplace.com/2021/01/buzzfeed-spac-merger-what-to-know-about-spnv-stock-amid-rumors-of-buzzfeed-deal/.

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