‘We Haven’t Won Yet’: Stripe Finds Growth Has a CostRead Now

BuzzFeed CEO Jonah Peretti. Photo by Bloomberg.

The Briefing: What BuzzFeed and Vice SPAC Talks Show

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 culture policy
Ban It, Divest It or Regulate It? Washington Looks for an Answer to TikTok
Ban It, Divest It or Regulate It? Washington Looks for an Answer to TikTok
Hi, welcome to your Weekend!Interesting dinner table discussion this week: My 13-year-old daughter, hearing about Nancy Scola’s cover story on TikTok’s war in Washington, offered her prediction for what would happen if the U.S. took the drastic step of banning the app.“Every teenager in America would refuse to come out of their rooms,” she said. “They’d be so mad. They just wouldn’t go out...
Latest Briefs
 
Amazon Fresh Hikes Grocery Delivery Fees
Shopify CTO Departs Following Layoffs of Technical Leaders
Bankrupt Online Wine Seller Winc Finds Buyer For Assets
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.
Microsoft CEO Satya Nadella. Photo by Bloomberg
Exclusive microsoft ai
How Microsoft’s Stumbles Led to Its OpenAI Alliance
For more than a decade, Microsoft Research, the company’s in-house research group, has touted artificial intelligence breakthroughs such as translating speech to text and software that could understand human language or recognize objects in images.
Patreon CEO Jack Conte. Art by Mike Sullivan
Exclusive startups entertainment
At Patreon, Mismanagement Thwarts a Pandemic-Era Star
Two years ago, Jack Conte seemed to have pulled off one of the most remarkable makeovers in recent Silicon Valley memory.
Sumo Logic CEO Ramin Sayar. Photo by Bloomberg.
Exclusive
Thoma Bravo, Vista Approach Sumo Logic About a Possible Buyout
Private equity firms including Thoma Bravo, Vista Equity Partners and Francisco Partners have approached data analytics software company Sumo Logic expressing interest in a possible acquisition, according to a person familiar with the matter.
The back windshield of a Waymo Chrysler Pacifica robotaxi prototype. Photo by Bloomberg
Exclusive google autonomous vehicles
Alphabet’s Waymo Robotaxi Subsidiary Cuts Staff, Including Trucking Engineers
Alphabet’s self-driving vehicle unit Waymo quietly laid off staff Monday, continuing a wave of job cuts at the parent company of Google, according to LinkedIn posts from affected employees and one person briefed about the move.
CEO Maju Kuruvilla. Photo: Getty Images
Exclusive startups venture capital
Bolt CEO Cuts Staff a Third Time as Revenue Lags
Bolt, the one-click checkout startup that slashed staff at least twice last year as growth fell short of its goals , laid off around 10% of employees on Tuesday, or at least 50 people, according to two people with direct knowledge.
Photo via Shutterstock.
Exclusive microsoft ai
Microsoft Plans Security Features, Wider Release for Its OpenAI-Powered Coding Tool
ChatGPT has generated headlines and hype since its release last year, with its humanlike responses to written prompts.