Benzinga | Aug 2, 2021 11:20AM EDT

BuzzFed Late Friday Announced Filed Registration Statement On Form S-4 Related To Proposed Merger With Subsidiary Of SPAC 890 5th Avenue Partners

BuzzFeed, the leading tech-powered media company for digital content and commerce for millennial and Gen Z audiences, announced today the filing of a registration statement on Form S-4 with the Securities and Exchange Commission in connection with its proposed merger with a subsidiary of 890 5th Avenue Partners, Inc. (NASDAQ:ENFA, ENFAU, ENFAW))) ("890"), a special purpose acquisition company. On June 24, 2021, BuzzFeed and 890 announced their plan to merge (the "Merger"). As part of the transaction, BuzzFeed will acquire Complex Networks from Verizon and Hearst, subject to regulatory approval and closing conditions (together with the Merger, the "Business Combination").

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210730005590/en/

The Form S-4, filed with the SEC today by 890, reports BuzzFeed's financial performance for the first quarter of 2021.

Jonah Peretti, Founder and CEO of BuzzFeed commented, "BuzzFeed's Q1 performance is defined by the strength of our fast-growing commerce business and robust advertising revenue growth, which reflect the strategic commitment to developing our highest-margin revenue lines to drive ongoing improvement in adjusted EBITDA. The second quarter is looking even stronger, with an acceleration of growth in each of our revenue streams compared to Q1, and a continuation in the shift in our revenue mix contributing to further margin expansion." Peretti added, "We remain excited about the pending acquisition of Complex Networks and look forward to working with its talented team to accelerate their commerce and advertising revenue growth while allowing BuzzFeed to benefit from their complementary audience and business profile."

In the first quarter of 2021, BuzzFeed's revenues grew 14% over the corresponding period last year, driven by strong growth in advertising and commerce revenues:

* Advertising revenue increased $7.3 million, or by 23%, driven by improvement in the number of direct sold ad impressions, which resulted from both an increase in time spent with our content across our portfolio of brands and improved monetization of that growing audience. This was partially offset by lower pricing reflecting the continued impact of COVID-19. In addition, HuffPost, which joined the BuzzFeed portfolio in February 2021, contributed $3.1 million in advertising revenue in the first quarter of 2021;

* Commerce and other revenue increased $6.3 million, or by 78%, primarily reflecting an increase in the number of orders generated during the quarter compared to last year; and

* Content revenue decreased $4.8 million, or by 20%, primarily reflecting delays in client spending due to the ongoing disruption from COVID-19.

BuzzFeed saw adjusted EBITDA climb by 54%, mainly driven by the improved revenue performance.

Pending Complex Networks Acquisition

In the first quarter of 2021, revenues at Complex Networks fell 14% year-over-year, as the revenue was impacted by the winding down of the go90 partnership, which is expected to be completed by the end of the year. Excluding the revenue attributable to the go90 partnership from the 2020 period, revenues would have grown 4%:

* Advertising revenue increased by $0.5 million, or by 5%, due to increased demand for display and banner ads, partially offset by a decrease in ad impression inventory both on site and in video;

* Content revenue for Complex Networks decreased $4.1 million, or by 30%, due primarily to the winding down of the licensing agreement with go90. Excluding the revenue attributable to the go90 partnership from the 2020 period, Content revenue grew 3% year-over-year.

Complex Networks improved adjusted EBITDA in the first quarter of 2021 by 3%.

The acquisition of Complex Networks is anticipated to close in the fourth quarter of 2021 as part of the Business Combination.