BuzzFeed's Stock Price Plunge Suggests Their SPAC Deal Had Irrational Valuations

Dec. 15, 2021 8:30 AM ETBuzzFeed, Inc. (BZFD), BZFDW8 Comments
WYCO Researcher profile picture
WYCO Researcher


  • BuzzFeed and Complex Networks went public via a SPAC.
  • The stock price has dropped about 40% since the deal was completed.
  • Recent financial results clearly indicate to me that the negotiated valuations were too high.
  • They focus too much on editorial content and target group market share while not focusing enough on profits.
  • Even at much lower trading prices, BuzzFeed stock is not a buy.

BuzzFeed Inc."s Listing Day

Bennett Raglin/Getty Images Entertainment

The recent BuzzFeed (NASDAQ:BZFD) deal shows that the general stock market is way overpriced and that there are inherent problems with SPAC deals. The negotiated terms of the combination of Buzzfeed and Complex Networks with the

This article was written by

WYCO Researcher profile picture
B.A. in Economics; M.S. in Finance. I usually write about distressed companies and companies in Ch.11 bankruptcy. I am semi-retired after spending decades in investments.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (8)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.