Five Firms Aid BuzzFeed’s SPAC Merger, Complex Networks Buy

Fenwick & West is advising digital-media outlet BuzzFeed Inc. on its go-public merger with a special purpose acquisition company in a deal that values the combined company at around $1.5 billion.

Akin Gump and BraunHagey & Borden LLP are advising the SPAC, 890 5th Avenue Partners Inc., on the transaction, which is expected to close in the fourth quarter.

Post-close, the parent company will be known as BuzzFeed Inc. and will be listed on the public market under the ticker symbol “BZFD,” according to a statement.

Proceeds from the merger will include up to $288 million in trust, and $150 million in convertible note financing led by Redwood Capital Management, advised by Stroock & Stroock & Lavan.

As part of the transaction, BuzzFeed also agreed to acquire youth-focused media company Complex Networks from Hearst Corp. and Verizon Communications Inc. for $300 million. Reed Smith said it’s advising Complex Networks and also representing Verizon and Hearst on the transaction.

BuzzFeed founder Jonah Peretti, who’s staying on as CEO along with his management team, said the company has built a diverse, loyal audience for its line of internet content and brands. “With today’s announcement, we’re taking the next step in BuzzFeed’s evolution, bringing capital and additional experience to our business,” he said.