SPAC 890 Fifth Avenue Partners, named after the fictional Avengers mansion, raised $ 287.5 million when it went public in January of this year.
A number of PSPC investors are buying back their stock, which means online media will only receive a fraction of the $ 287.5 million held in the PSPC account, according to the report.
BuzzFeed and 890 Fifth did not immediately respond to Reuters requests for comment.
The transaction, announced in June, gave BuzzFeed a valuation of $ 1.5 billion, with the merger deal including a $ 150 million convertible bond financing led by Redwood Capital Management.
A PSPC typically sells stocks for $ 10 each, places the money in a trust account, and then looks for a company to buy. Its shareholders can choose to buy back their shares in exchange for cash.
The PSPC market has slowed this year, due to tighter accounting guidelines and closer scrutiny by the US Securities and Exchange Commission.
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