They Started Russiagate Now They Face The Ultimate Humiliation
Buzzfeed seems to be in trouble in the wake of kicking off Russiagate via the release of the Steele dossier.
Nasdaq has put a time limit on digital media company BuzzFeed Inc. to improve the bid price of its stock, according to a Securities Exchange Commission filing on Friday. The news adds to BuzzFeed’s recent woes as the company grapples with worsening revenues.
For the past 30 business days, BuzzFeed has seen its common stock priced below Nasdaq’s minimum of $1 per share - the equivalent of a 'red flag' for the stock exchange.
Nasdaq has since warned BuzzFeed that it must bring its stock above the minimum by 27th November, or potentially face delisting from the exchange.
A spokesperson for BuzzFeed declined to comment.
The red flag for the digital media giant has come after a wave of layoffs and the closure of its news division. In its most recent earnings report, BuzzFeed’s first-quarter revenue fell 27 percent year-over-year to $67.2 million.
It marks the latest setback for the company which went public in December 2021 after cleverly merging with a special purpose acquisition company. The move resulted in BuzzFeed receiving $1.5 billion in value and $288 million in cash, allowing the company to acquire Complex Networks, as well as Buzzfeed’s purchase of HuffPost in 2020.
In the event it fails to meet the 27th November deadline, BuzzFeed can potentially receive a 180-day extension, but only if it can meet certain criteria. This includes market value and written notice of intent to repair the bid price deficiency. Neglecting to do this would result in BuzzFeed getting dropped from Nasdaq.
These latest developments cast a worrying shadow over BuzzFeed as the company continues to struggle with its financial performance. As it stands, BuzzFeed has until the end of this month to turn its stock price around and avoid a potentially embarrassing exit from Nasdaq.