BuzzFeed insiders say the company is looking to acquire more companies. Meanwhile,"There's no shortage of capital, so dealflow should be plentiful," media analyst Alex DeGroote said of digital media.
Larger private equity firms are also increasingly taking aim at small, early-stage companies, McCormick said. A company like Bustle could help an acquirer could benefit from economies of scale and cost controls to become more profitable, said John Potter, principal consultant at technology and internet media consulting company McCooey and Potter Consulting.
However, two of the experts we spoke to said that while Bustle is a prime property to be acquired, they couldn't foresee a deal occurring until at least late next year. Plus, one source said, BDG has "steep expectations" on its valuation.