BuzzFeed Inc said on Thursday it would receive just about 6%, or $16.2 million, of the proceeds from the trust account of the blank-check firm it is merging with, after shareholders of the acquisition vehicle redeemed a majority of their shares.
The merger with special purpose acquisition company (SPAC) 890 Fifth Avenue Partners (ENFA.O), named after the fictional Avengers mansion, was originally projected to fetch $288 million for the online media outlet from the SPAC’s account.
A SPAC typically sells shares at $10 apiece, puts the cash in a trust account, and then searches for a company to buy. Its shareholders can choose to redeem their shares in return for cash.
The SPAC market has been slowing down this year, with tightening accounting guidance and closer scrutiny from the U.S. Securities and Exchange Commission.
The deal, which gave BuzzFeed a valuation of $1.5 billion in June, was approved by the SPAC’s shareholders on Thursday. The company will also get at least $150 million through a convertible note financing.