BZFD - BuzzFeed Needs To Scale To Grow And Be Profitable

• BuzzFeed has gone public, making it the first publicly traded purely digital media company.
• BuzzFeed went public via a merger with a SPAC that suffered a spate of investor withdrawals on the eve of BuzzFeed’s listing.
• Growth has slowed down at BuzzFeed, and the company needed the Complex acquisition that came with the SPAC deal, to fuel growth. Without acquisitions, it is debatable just how much.
• Having had its growth and profitability hit by the pandemic, the company has returned to growth and profitability.
• The company’s strategy remains one of buying its way into profitability, by acquiring companies like Complex, although this strategy may have been hurt by the SPAC withdrawals. After all, BuzzFeed said it needed this deal to make it more able to chase down targets, so having a smaller war chest cannot have been a good thing.

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