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Media companies face delistings as stock prices collapse
May 23, 2023
Innovid has become the latest media company at risk of delisting, with the New York Stock Exchange sending the ad tech firm a notice for its average closing price being less than $1 over a period of 30 consecutive trading days.
Why it matters: The collapse of some media stocks have come from bad SPAC deals.
Details: Innovid and BuzzFeed both went public via SPAC deals in December 2021 — the former on the NYSE and the latter on the Nasdaq. They have each seen their stock prices dramatically drop over the past year.
- BuzzFeed has avoided a delisting notice, for now. Its shares spiked following news of it working with OpenAI and striking a new deal with Meta. But it's since come back down to trading under $1 over the past month.
- Audacy's stock was halted on May 16 as the NYSE initiated its delisting process. The company said it intends to appeal.
Yes, but: Audacy, formerly known as Entercom, did not go public via a SPAC deal. Its IPO was in 1999.
