"Byron Allen, a media entrepreneur known for making sometimes unsolicited bids on massive companies such as Paramount Global and Tegna, has agreed to pay $120 million for a 52 percent stake in the digital-media company. BuzzFeed founder Jonah Peretti will end his two-decade run as the company's chief executive and become president of BuzzFeed AI - a role that he's essentially occupied for years, creating products like BF Island and Quiz Party that have failed to achieve the viral heights of BuzzFeed's former offerings."
"BuzzFeed's fall from the pinnacle of internet media has been well-documented. Algorithmic changes, a plunge in digital advertising money, and investor disfavor have all forced Peretti to scramble to keep his company afloat. Peretti acquired HuffPost and Complex,then took BuzzFeed public in 2021. In 2023, BuzzFeed shuttered its award-winning news division and a year later sold Complex. Saddled with debt and strapped for cash, BuzzFeed earlier this year warned that it had "substantial doubt" about its ability to stay in business."
"With its stock trading under $1, it also risked being delisted from the Nasdaq ( again). The company had discussions with other potential partners, but Allen stood out for his willingness to buy the whole thing. Allen, a former comic, says he sees BuzzFeed as a means of creating the next free streaming giant, à la YouTube. His private media company, Allen Media Group, owns the Weather Channel and more than 30 local TV stations."
"Last month, he purchased Stephen Colbert's late-night slot on CBS, which will now air Comics Unleashed, a comedy talk show hosted by Allen. This interview has been edited and condensed for clarity. So why are you buying a majority stake in BuzzFeed? I think a lot of people are wondering about your interest in it, given its struggles over the years.I think Jonah Peretti's done a phenomenal job building two icon"
Byron Allen will pay $120 million for a 52% stake in BuzzFeed after years of financial strain. Jonah Peretti will step down as chief executive after two decades and become president of BuzzFeed AI, a role he has effectively held while building products such as BF Island and Quiz Party. BuzzFeed’s decline has been driven by algorithm changes, reduced digital advertising revenue, and investor disfavor. The company shut its news division, sold Complex, carried debt, and warned earlier this year about substantial doubt regarding its ability to continue. Its stock fell below $1, creating delisting risk. Allen plans to use BuzzFeed to build a next free streaming giant similar to YouTube.
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