(Bloomberg) — BuzzFeed Inc.’s plunge after leaping into the public market earlier this week is accelerating.
Shares of the digital media company spiraled 24% to $5.87 Thursday, closing at a fourth consecutive record low. BuzzFeed debuted on Dec. 6 after merging with blank-check company 890 5th Avenue Partners Inc., and since then it has shed nearly 40% of its value as the majority of investors opted not to participate, leaving the business with a fraction of the millions in funding it originally expected to receive.
The plunge by the company that Jonah Peretti co-founded 15 years ago contrasts with this week’s 3.2% rise in the De-SPAC Index, which measures the performance of a group of 25 companies that came from SPAC reverse mergers.
To be sure, volatility in blank-check companies and the firms that go public through them has been pronounced after the offerings reached a peak in the first quarter of this year. The De-SPAC Index is down 48% from its Feb. 12 record, compared with a 19% rally in the S&P 500 Index over the same period.
(Updates share movement throughout.)
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