BuzzFeed becomes digital media test case as industry waits to find out investor interest

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BuzzFeed will be the first significant digital media company to go public in what may or may not become a wave of SPACs

as its five comparable peers -- an e-commerce platform, a native advertising platform, a gaming company, an internet holding company and a legacy media journalism company, respectively. Those companies aren't just dissimilar -- they're all quite different from BuzzFeed itself.was valued at $1.7 billion in 2016.

"There was definitely a hype period for digital media when a lot of companies were growing really quickly but didn't have strong, sustainable businesses," said Peretti, implying Buzzfeed may not have deserved that rich of a valuation in 2016. "We've spent the past year managing our costs, building a really strong, sustainable, diversified business."

Trading publicly will put Peretti's thesis to the test. It's possible Buzzfeed's lack of growth has been more about a volatile advertising-based industry dominated by Facebook and Google -- one which may not subside in the years to come. BuzzFeed's share performance will likely determine if its smaller peers, such as Vox and Bustle, can succeed as public companies of their own. It will also give BuzzFeed currency to acquire other, smaller sites that can bolster BuzzFeed's commerce and advertising businesses."I think there's a lot of excitement to join up with us," Peretti said. "We are well capitalized, and we have scale.

 

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