Shares of BuzzFeed Inc. gave up sharp early gains and closed lower on their first day of trading after merging with a special-purpose acquisition company.
The SPAC, 890 5th Avenue Partners Inc . , merged with BuzzFeed in a deal that took the media company public. SPACs are shell companies that are essentially piles of cash that trade on the stock exchange. Once they merge with a company, that company takes their place on the exchange. These deals have become a popular way for companies to go public.
