Why BuzzFeeds poor debut doesnt necessarily spell bad news for new media

▤ Summary

BuzzFeed fell 39% in its first week of trading, closing at $6.07 per share, an inauspicious start for the prospects of digital media companies on public markets. "Digital media doesnt really have comps," BuzzFeed Chief Executive Officer Jonah Peretti told CNBC in an interview. But when special purpose acquisition companies, or SPACs, lost their investment appeal around April, the industry pumped the brakes on plans to go public. Investors that originally committed $288 million in cash to the companys SPAC pulled back 94% of it, instead of moving forward as BuzzFeed shareholders. The key level for BuzzFeed will be $15 per share, said Bustle Digital Group CEO Bryan Goldberg.

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