BuzzFeed shares fell 41 percent on Monday after the company’s lockdown ended, allowing its original investors to freely sell their shares.
BuzzFeed’s stock has continued to decline since the company’s IPO in December. According to Business Insider, since the company went public, BuzzFeed has lost three editors-in-chief, called for the newsroom buyout, and laid off its staff.
A BuzzFeed spokesperson confirmed that the drop in the stock was due to the quarantine period, which will end on June 1.
How Wall Street Magazine explained:
Many publicly traded companies have insider lock-in agreements that prevent them from selling their shares until the end of a specified period. Such a move is typically aimed at reassuring investors, at least initially, that there are no new large blocks of shares in the market that could affect the share price.
This was reported by a BuzzFeed representative. magazinel Because the company has a very low IPO rate and few shareholders, the company is prone to extreme changes when large investors sell.
On Monday, it was less than when the company bought it from AOL in 2011. According to Yahoo Finance, BuzzFeed’s market cap is approximately $300 million, $15 million less than AOL’s $315 million purchase price.
Source: Breitbart
