Things usually look exciting for a company that’s just gone public… just not for Buzzfeed (BZFD). Investors are weighing in on its prelaunch issues, trampling on Buzzfeed’s plans of raising $288m — reducing its valuation to $1.5b from $1.7b in a week.
The fuss is about Buzzfeed’s unfair labor contracts that got employees and union members staging a walk-out over unfair wages, restrictive control over employees’ social lives, and enforcing a clickbait culture to gain clicks. We're curious to see how these issues, which have been spanning over the last 2 years, pan out.
Why it matters
While the stock market welcomed a 45% surge on its first day of trading, things seemed rocky on Monday with a 9.5% drop.