3 weeks ago
BuzzFeed, nan integer media pioneer that was erstwhile weighted arsenic precocious arsenic $1.7bn amid a backstage equity-funded activity of liking successful websites that generated monolithic amounts of online postulation successful nan 2010s, has yet changed hands for $120m.
On Monday, nan institution announced that a controlling liking successful nan institution has been sold to media entrepreneur Byron Allen. Allen, who often makes large, sometimes unsolicited bids for media companies, is besides an on-screen characteristic successful summation to controlling his Allen Media Group conglomerate, which owns networks including The Weather Channel. Allen’s show, Comics Unleashed, will switch nan Late Show pinch Stephen Colbert connected CBS’s schedule starting later this month.
As portion of nan transaction, Allen will return complete for nan BuzzFeed founder, Jonah Peretti, arsenic main executive, though Peretti will enactment connected arsenic president of BuzzFeed AI. BuzzFeed besides owns nan progressive news outlet HuffPost.
“Byron’s vision, operational acquisition and semipermanent committedness to premium contented makes him exceptionally well-positioned to lead BuzzFeed and HuffPost into our adjacent shape of growth,” Peretti said successful a statement. “And personally, I’m thrilled Byron is taking complete The Late Show With Stephen Colbert’s clip slot, and highly assured that his relationships pinch talent will bring immoderate unthinkable stars to nan BuzzFeed platform.”
Peretti said nan institution will acquisition “significant” costs cuts up of Allen’s arrival, which often mean worker layoffs.
In nan announcement, Allen said his attraction will beryllium “expanding into free-streaming video, audio and user-generated content”.
Allen, who owns 13 section tv networks and 10 HD tv networks, suggested that BuzzFeed will usage AI to effort to compete pinch YouTube “to go different premiere free video streaming service”.
BuzzFeed’s worth soared successful nan 2010s amid a backstage equity-funded activity of liking successful websites that generated monolithic amounts of online traffic. It erstwhile included a well-staffed integer newsroom, but pivoted away from nan publicity business successful 2023. Since then, nan institution has go amended known for contented marketing, though its videos still often spell viral.
In an effort to make cash, BuzzFeed went public successful precocious 2021, a determination that turned retired to beryllium disastrous, arsenic nan company’s banal value has continued to crater.
In nan first 4th of 2026, nan institution suffered a nett nonaccomplishment of $15m.
As of Monday evening, nan company’s banal value sits astatine $0.71 per share. But Allen will beryllium buying 40m shares astatine $3 per share. “That says thing astir what he sees successful what we’ve built,” Peretti said successful an soul memo to BuzzFeed labor astir nan waste that was obtained by nan Guardian.
In nan memo, Peretti said he would speak straight pinch labor connected Tuesday astir nan coming costs reductions.
BuzzFeed’s 2 astir salient integer media competitors, Vice Media and Vox Media, person besides seen financial challenges since nan days erstwhile Facebook algorithms helped them make monolithic – but difficult to monetize – online audiences.
Vox Media is reportedly considering a imaginable waste of parts of nan company, pinch James Murdoch, boy of media mogul Rupert Murdoch, said to beryllium nan starring imaginable buyer.
