Can Creatives Survive the Future War Against Dall-e 2?Read More

BuzzFeed CEO Jonah Peretti. Photo by Bloomberg.
The Briefing

The Briefing: What BuzzFeed and Vice SPAC Talks Show

By  |  March 16, 2021 5:01 PM PDT
Photo: BuzzFeed CEO Jonah Peretti. Photo by Bloomberg.

It turns out SPAC deals aren’t a surefire way to riches for every company executive. That’s one takeaway from our report this morning that neither BuzzFeed nor Vice Media are likely to recapture their 2016-17 era peak valuations when they merge with a special purpose acquisition company to go public. Instead, shareholders in both companies are probably facing a loss, particularly those in Vice, where the haircut could amount to more than 50% of the value.

That seems, how shall we put this…reasonable. After all, neither company is growing much. It’s almost enough to make you think SPAC dealmakers are sensible, if it wasn’t for the fact that startups in the electric vehicle and aviation industry are drawing huge numbers from SPAC mergers despite not having sold any products. Flying taxi startup Archer Aviation going public at a $3.8 billion valuation comes to mind. Sure, those companies are developing revolutionary technologies that could change the world. BuzzFeed and Vice, while each producing hundreds of millions of dollars in revenue a year, aren’t revolutionizing anything.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
The Weekend Startups AI
The Shaky Mental State of Silicon Valley
The Shaky Mental State of Silicon Valley
Hi, welcome to your Weekend! Next month, when the San Francisco Board of Supervisors reconvenes after its summer recess, one of the matters up for discussion will be a resolution to decriminalize the use of psychedelics. While San Franciscans have never needed Board approval to partake in the wonders of nature, you can bet plenty of tech workers around town will be rooting for a yay...
Latest Briefs
Peloton Announces Job Cuts, Store Closures and Price Hikes
South Korea’s Mirae Asset Management Led $250 million SpaceX Investment
Founder of Crypto Exchange Houbi in Talks to Sell Stake for $1 Billion
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Josh Brill
Exclusive Asia Startups
TikTok’s $4 Billion Advertising Machine Is Messy Behind the Scenes
Two years ago, social media sensation TikTok came up with a slogan to prod brands to be more authentic in their advertisements on the app: “Don’t Make Ads.
Viral Patel, global head of technology investing for Blackstone Credit. Art by Clark Miller.
Exclusive Venture Capital Startups
Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending Push
Private equity giant Blackstone is gearing up to make its first major push into lending to startups and technology companies—joining a corner of the debt market that’s quickly heating up.
Illustration by Clark Miller
Man v. Machine AI
Can Creatives Survive the Future War Against Dall-e 2?
Earlier this year, Karen X. Cheng, a video director in San Francisco, was commissioned by a client to make an augmented reality dress for special events.
Art by Clark Miller.
Venture Capital Startups
Venture Capital’s Limited Partners Warn of Fundraising Slowdown
The era of easy money could be over for venture capital firms. Although VC fundraising has so far matched last year’s brisk pace, limited partners—the people and institutions that invest in VC funds—say a slowdown is afoot.
Photo by Alaska Air Group.
For Meta’s Next CFO Susan Li, Metaverse Dreams Mean Real-World Challenges
When Meta Platforms reported its first-ever quarterly revenue decline last month, the Facebook parent company also made a key promotion with little fanfare: 36-year-old finance executive Susan Li would become chief financial officer in the fall, replacing longtime CFO Dave Wehner, who held the role for eight years and would transition to a strategy role.
Enterprise Power List Venture Capital Enterprise
Introducing The Information’s Enterprise Tech Power List
The biggest battle in tech is happening where most consumers can’t see it: the cloud. And a new cast of executives and investors are increasingly calling the shots—making decisions about the future of the battle with trillions of dollars at stake.