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The company’s planned valuation of $1.5 billion was based on optimistic future profits—projected at approximately $117 million by the end of 2022—mainly driven by e-commerce through affiliate links. However, with mounting losses and declining relevance, BuzzFeed's valuation has been called into question.
Investors and industry analysts warn that many ventures masked as tech companies, especially those heavily reliant on venture capital and automation tools for content creation, are overvalued. BuzzFeed's model resembles that of other “zombie” media companies like Vice, which suffered substantial losses and sold off assets or laid off staff to stay afloat.