Buzzfeed, which owns HuffPost, Buzzfeed and a couple of other sites is teetering on the edge of bankruptcy as a big bill comes due.
Via Adweek:
The digital media company BuzzFeed Inc., which owns BuzzFeed, HuffPost, and the properties Tasty and First We Feast, is facing a potential $124 million debt crisis related to funds it raised in June 2021 to finance its acquisition of Complex Media.
According to the contract governing the deal, the creditors who lent BuzzFeed the money more than three years ago have the right to require the publisher to repurchase the debt, plus interest, beginning Tuesday, Dec. 3.
BuzzFeed used a portion of the cash generated from its sale of Complex this February to pay down the loan, but it still owes $123.5 million—$118.8 million of principal debt and $4.7 million of accrued interest, according to public filings.
If these creditors demand that BuzzFeed repurchase the loans in their entirety, BuzzFeed would not be able to do so, which could force the publisher to take drastic action to raise the funds or potentially declare bankruptcy.
“We currently do not have sufficient cash on hand or projected cash flows to fund the repayment of the notes,” the company said in its third-quarter earnings report.
Times are tough in the media business but they’re even tougher for leftist media due to a loss of trust from their core audience.
You can only lie to people for so long before they walk away from you and Trump’s win has accelerated that trend in leftist media.
Seeing Biden and Harris react to Trump’s win, after calling him literal Hitler for years was a wake up call for even the most die-hard Dems.
The odds of anyone buying Buzzfeed are slim given the environment but I for one will not be sad to see them go.
What about you?