What happened to BuzzFeed ($BZFD)
In this week's article we cover the rise and fall of BuzzFeed
Hi Everyone 👋 In week’s article talked about Buzzfeed’s rise and fall and covered their ongoing lawsuits, failed SPAC, and much more.
Johann Peretti made a website that scrapes the internet to find viral content and called it Buzzfeed. Later in years when the website blew up, Buzzfeed started churning its own content and made mainly made money from ads.
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Today, Buzzfeed is one of the largest internet group and is the only digital media company to get listed on the stock market ($BZFD). It has also acquired many notable brands such as HuffPost and Complex Media.
Buzzfeed has also diversified its revenue sources and is now not dependent on just Display ads. In 2020, The company generated $321 Milion in revenue and $10.34 Million in net income which is growing year on year.
After all that you might wonder. Then WTF is wrong with Buzzfeed?
The answer lies in charts, If you look that their 5-year Google trends chart it shows that Buzzfeed is going on a downturn. In 2016, The company was at its peak and generated over 500 Million views monthly just from its website alone. But today the company only reaches to 90 Million people which is still a lot but not $1.5 Billion lot.
When the company struggled to get any investors it flocked to New York to get listed via SPAC which is a very shady way to get listed on the stock market. With this method, the company doesn’t have to get through the long process of checking and due diligence. And is allowed to get listed.
On the very first day, Buzzfeed stock tumbled 20%. To more about that check out our website, where we cover similar topics.
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