The majority of the company’s cash and cash equivalents balance were held at Silicon Valley Bank.
BuzzFeed, Inc. announced financial results for the full year and fourth quarter on Monday, with the media company reporting a huge net loss. The report also revealed that the California-based company kept a majority of its cash and cash equivalents at the recently-defunct Silicon Valley Bank.
The statement went on to quote a joint release from the US Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation that says that depositors would be fully protected from the bank's folding.
Jonah Peretti, BuzzFeed Founder & CEO admitted that the fourth quarter was particularly difficult for the company, writing: "There's no denying that 2022 was a tough year for digital media. The challenges we faced in Q4 are also impacting us in Q1 2023, and it is clear we have more work to do to realize the full potential of our combined brand portfolio."
"As we work to address these challenges, our value proposition continues to resonate strongly in the marketplace," he continued. "With iconic brands, a massive audience and a differentiated technology platform, we occupy a unique position in the ecosystem of audiences, creators, platforms and advertisers. And, our work in the exciting new areas of creators and artificial intelligence are continuing to lead the way in defining the future of media."
The company saw a loss of "$201.3 million, including a non-cash goodwill impairment charge of $102.3 million, compared to net income of $25.9 million in 2021." The Hollywood Reporter writes that "During the latest quarter, BuzzFeed posted a non-cash goodwill impairment charge of $102.3 million, in part due to a steep decline in the value of the company’s stock price in Dec. 2022." In all, Buzzfeed'sbrought in $134.6 million in overall revenues during the fourth quarter. The digital media company ended the quarter with $106 million in net losses, compared to a year-earlier profit of $41.5 million.
BuzzFeed ended the year with cash and cash equivalents of approximately $56 million, the report states, revealing also that most of the company's cash and cash equivalents were held at Silicon Valley Bank: "As of March 10, 2023, the majority of the Company’s cash and cash equivalents balance were held at Silicon Valley Bank. However, in a joint statement released by the US Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation, the U.S. government reassured that all depositors will be fully protected. The Company is accessing its funds and does not currently anticipate any disruption to its ongoing operations."
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