"BuzzFeed is selling a controlling stake to Allen Family Digital for $120 million-$100 million of which isn't due for five years. Allen Family Digital, associated with Byron Allen, will control about 52% of BuzzFeed's outstanding shares at $3 each. BuzzFeed's shares were up more than 101% to over $1.49 on Tuesday morning. The stock has been trading at under a dollar a share for most of this year."
"As part of the deal, BuzzFeed CEO and founder Jonah Peretti will transition into a new role, president of BuzzFeed AI. Notably, BuzzFeed hasn't exactly had success with its AI strategy, which included AI-generated quizzes and articles. Meanwhile, the title of CEO will transfer to Allen-a comedian and the CEO, founder, and chairman of Allen Media Group."
""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," Peretti said in the announcement. "To prepare for his arrival, we are planning to make significant changes, including cost reductions and setting up BuzzFeed Studios . . . and Tasty as a new independent entity," Peretti continued."
"Peretti also noted how Allen's long-running show, Comics Unleashed, is taking over Stephen Colbert's The Late Show slot on CBS. Allen originally found success as a comedian and pays CBS for the airtime, according to the Los Angeles Times. Peretti is "highly confident that his relationships with talent will bring some incredible stars to the BuzzFeed platform.""
BuzzFeed is selling a controlling stake to Allen Family Digital for $120 million, with $100 million not due for five years. Allen Family Digital will control about 52% of BuzzFeed’s outstanding shares at $3 each. BuzzFeed shares rose sharply after the announcement. BuzzFeed CEO and founder Jonah Peretti will become president of BuzzFeed AI, while the CEO role will transfer to Byron Allen, founder and chairman of Allen Media Group. Peretti plans significant changes including cost reductions and creating BuzzFeed Studios, and making Tasty an independent entity. Peretti also points to Allen’s entertainment relationships and experience, including his CBS late-night presence, as a foundation for growth at BuzzFeed and HuffPost.
Read at Fast Company
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