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Insert your own BuzzFeed emojis here for this surprise deal.
After running in to a cash crunch as a publicly traded company, BuzzFeed has found a buyer in Byron Allen, the Comics Unleashed CBS late-night host and mogul behind the Weather Channel’s TV presence, as well as as a patchwork collection of syndicated shows and channels that comprise his Allen Media Group.
In a $120 million agreement, Allen will take a 52 percent majority stake in the company as well as the CEO role from founder Jonah Peretti, funded by $20 million in cash and $100 million in the form of a promissory note due five years after deal close, which is expected in May.
The sale for just $20 million upfront marks a dramatic fall from where BuzzFeed stood at its height of cultural relevance, when Peretti had turned down a $650 million offer from Disney in 2013. At that time, BuzzFeed had surfed the waves of Mark Zuckerberg’s decision to send millions of readers from Facebook outside of the platform to news sites. The company led a wave of Millennial news brands — Mashable, Mic and Vice News among them — that built business upon the idea that they could create viral digital content and distribute it through links from Facebook and Twitter.
While those companies folded (Mic) or were sold off (Mashable) or live on in a totally different form (Vice), BuzzFeed was large enough to IPO in 2021 (the same year it bought HuffPost from Verizon in order to scale up its business), though it languished on the Nasdaq ever since. It shuttered its once-formidable news operation BuzzFeed News two years later and since has been weighing the sale of its assets, including the food brand Tasty.
“Byron Allen has built one of the world’s largest media companies and is one of the most accomplished media entrepreneurs in the industry, having spent 30-plus years transforming distribution infrastructure, identifying strategic assets, and scaling them into something much greater,” stated Peretti. “Byron’s vision, operational experience, and long-term commitment to premium content makes him exceptionally well-positioned to lead BuzzFeed and HuffPost into our next phase of growth. And personally, I’m thrilled Byron is taking over ‘The Late Show With Stephen Colbert’s’ time slot, and highly confident that his relationships with talent will bring some incredible stars to the BuzzFeed platform.”
“Jonah is a great visionary and has done a phenomenal job. BuzzFeed and HuffPost have become two iconic global digital media brands with powerful audience reach and strong cultural importance,” said Byron Allen, incoming Chairman and CEO of BuzzFeed. “Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content. As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premiere free video streaming service.”
More to come.
