Byron Allen Buys Controlling Stake in BuzzFeed
Allen will take over as chairman and CEO as BuzzFeed shifts toward AI-powered video, audio and user-generated content.
- On Monday, media entrepreneur Byron Allen acquired a 52% majority stake in BuzzFeed for $120 million, assuming the role of Chairman and CEO of the struggling digital media company.
- Founder Jonah Peretti, who served as CEO since 2006, will transition to president of BuzzFeed AI as part of the leadership change, while Allen brings extensive media experience from Allen Media Group.
- The $120 million deal includes $20 million in cash and a $100 million promissory note due five years after closing, valuing BuzzFeed roughly 10 times higher than its $30 million market cap.
- BuzzFeed's recent financial performance remains dire, with revenue declining 12.4% to $31.6 million in the latest quarter and net losses widening to $15.1 million, prompting the sale.
- Allen aims to expand BuzzFeed into free-streaming video and audio, claiming the company is "chasing YouTube" to become a premiere streaming service despite ongoing industry headwinds.
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