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When listicle compiler BuzzFeed announced plans to go public via—you guessed it—special purpose acquisition company in June, it was a pretty underwhelming deal. BuzzFeed was to get about $300 million in cash out of the deal at a valuation of $1.5 billion, exactly as much as it was worth six years ago.

That’s not a great trajectory, but it also proved to be nearly irrational exuberance given the reality of BuzzFeed’s public debut today.

BuzzFeed raised about $16 million from the SPAC deal, which is far less than anticipated. When BuzzFeed announced its plan to go public in June, it said 890 Fifth Avenue Partners held about $288 million in cash. But the vast majority of investors withdrew…..

In totally unrelated news, another company is trying desperately to wriggle out of its own now-somewhat-less-lucrative-than-expected SPAC deal.

Fertitta [Entertainment] said in a letter this week that it plans to terminate its proposed merger with special-purpose-acquisition company Fast Acquisition Corp., on the basis that the agreement didn’t close by Dec. 1, the deal’s termination date.

On Thursday, Fast Acquisition rejected Fertitta’s move to end the deal, adding that the company is bound by its obligations under the agreement. The SPAC said Fertitta delayed providing the required financial documents in time, thereby setting back the deal’s closure process…. The average SPAC has lost about 60% of its money since the end of July before its deal goes through, up from roughly 25% in the first seven months of the year, SPAC Research data show.

BuzzFeed votes to go public amid staff walkout [CNN]
Golden Nugget’s Parent Tries to Halt Proposed Deal, but SPAC Says No [WSJ]

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