BZFD - BZFD Stock: BuzzFeed Is Prepping for a Reverse Stock Split
2024-04-16 10:58:44 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
BuzzFeed (NASDAQ: BZFD ) stock is a hot topic on Tuesday as the media company is seeking approval for a reverse stock split at its next shareholder meeting.
That shareholder meeting is set for April 25 and will have investors voting on several matters. Among them is a request to allow it to consolidate shares of its outstanding stock.
BuzzFeed is seeking approval for a reverse stock split ranging from a 1-for-2 to 1-for-25 basis. If investors approve this plan, the company will decide on the ratio of its reverse stock split later.
Following approval, BuzzFeed will also have to decide on a time for the reverse stock split. The filing covering its shareholder meeting says it would do so within one year of getting stockholder approval.
Why a Reverse Stock Split for BZFD Shares?
BuzzFeed has had it rough ever since the company went public via a special purpose acquisition company (SPAC) merger. That initially saw an incredible drop in value shortly after it went public in December 2021.
And that negative momentum hasn’t stopped since then. As a result, shares of BZFD stock are only trading for about 39 cents each as of this writing. This puts the company in danger of being delisted as it’s below the $1 minimum bid required for a Nasdaq listing.
BuzzFeed is obviously looking to use its reverse stock split to boost the price of BZFD shares. Investors will want to keep an eye on the company to see how that works out for it.
BZFD stock is down 4.8% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
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