BuzzFeed secures $40 million loan, repays debt, buys back shares

NEW YORK - BuzzFeed, Inc. (NASDAQ:BZFD), a prominent digital media company with annual revenue of $189 million, has secured a new $40 million term loan from Sound Point Agency LLC, which will be instrumental in enhancing the company’s financial structure and supporting its strategic growth. The announcement made on May 27, 2025, outlines the company’s plan to utilize the loan to achieve several financial objectives. According to InvestingPro data, the company currently operates with a moderate debt level, maintaining a debt-to-equity ratio of 0.59.

The new funding will enable BuzzFeed to repay all its outstanding convertible notes, thereby eliminating its convertible debt obligations. This move is seen as a step towards simplifying the company’s capital structure and strengthening its balance sheet.

In addition to debt repayment, BuzzFeed has negotiated a deal to repurchase 1,826,845 shares of its Class A common stock, which comprises approximately 4.9% of the outstanding shares in this category. The shares are being bought back at a price of $1.824 per share from a single shareholder in a privately negotiated transaction.

BuzzFeed’s management believes that the new credit facility will bolster the company’s capital position and expedite its commitment to long-term growth and financial discipline. The transaction also reflects the company’s confidence in its own stock and its dedication to shareholder value. With a market capitalization of $74 million and analysts forecasting sales growth this year, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

The terms of the loan and the share repurchase have been detailed in an 8-K filing with the Securities and Exchange Commission (SEC). Lucid Capital acted as the placing agent for the transaction. The company’s overall financial health score stands at "FAIR" according to InvestingPro metrics, which provide detailed analysis of various financial aspects including growth, profitability, and cash flow.

BuzzFeed, founded in 2006, has established itself as a key player in the digital media space, offering a blend of entertainment, news, and commerce that resonates with a vast online audience. The company’s approach to content creation aims to be inclusive, empathetic, and creative, impacting the way people consume media and shaping internet culture.

As with any forward-looking statements, there are inherent risks and uncertainties involved. BuzzFeed’s management has outlined expectations for the company’s future but acknowledges that actual results could differ materially due to various factors.

Investors and other interested parties can find more information on the company’s Investor Relations website. This news article is based on a press release statement from BuzzFeed, Inc.

In other recent news, BuzzFeed Inc. reported its first-quarter 2025 earnings, revealing a slight decline in revenue to $36 million from $37 million in the same period last year. Despite this decrease, the company significantly reduced its net loss to $12.5 million from $27 million, showcasing improved cost management and strategic focus. Advertising revenue saw a modest increase to $21.4 million, up from $20.9 million, indicating some resilience in BuzzFeed’s core business. Additionally, commerce and other revenue rose to $10.2 million from $9.3 million, driven by growth in organic affiliate commerce.

BuzzFeed continues to invest in AI-driven innovations, which have notably boosted content engagement, with AI-created content shared seven times more than other types. The company is also developing BF Island, an AI-native social media app, which could further enhance user engagement. For the full year 2025, BuzzFeed projects revenue between $195 million and $210 million, with adjusted EBITDA expected to range from $10 million to $20 million. Analysts from firms such as Matt Omer have highlighted the company’s operational efficiency and strategic focus on scalable revenue streams as key factors in its improved financial performance.

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