Byron Allen Acquires Controlling Stake in BuzzFeed for $120 Million
Media entrepreneur Byron Allen will become CEO of BuzzFeed after purchasing a controlling stake through Allen Family Digital. Jonah Peretti, who co-founded the company 20 years ago, will step down as CEO and become president of BuzzFeed AI. The deal comes as BuzzFeed shares have fallen more than 98% since going public in 2021.
New York PostMedia entrepreneur Byron Allen has entered into a deal to buy a stake of about 52% in BuzzFeed for $120 million, a transaction that will install him as the digital media company's next chief executive. Allen Family Digital will acquire 40 million BuzzFeed shares at $3 apiece. 9% premium to Friday’s closing price.
BuzzFeed’s market capitalization stood at roughly $31 million according to LSEG data. The deal is expected to close by the end of May 2026. It will be funded with $20 million in cash and a $100 million promissory note due five years after closing that carries a 5% annual interest rate.
Jonah Peretti, who co-founded BuzzFeed 20 years ago, will step down as CEO. He will serve as president of BuzzFeed AI. Byron Allen will take over as BuzzFeed CEO. 5 billion.
7 billion. Its shares have fallen more than 98% since going public in 2021. Shares soared about 156% in extended trading after the announcement. 71 per share.
The transaction marks a steep discount from the company’s earlier valuations. BuzzFeed owns the progressive news outlet HuffPost. Byron Allen controls Allen Media Group, which owns networks including The Weather Channel.
6 million. 5 million a year earlier. In the first quarter of 2026, BuzzFeed suffered a net loss of $15 million.
The company withheld its annual forecast. BuzzFeed expects to provide an update on its financial outlook in the coming months. Byron Allen’s show Comics Unleashed will replace the Late Show with Stephen Colbert on CBS’s schedule starting later this month.
Peretti welcomed the incoming leadership in a statement. “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,” he said. ” The founder told employees in an internal memo that the company will undergo significant cost cuts ahead of Allen’s arrival.
“That says something about what he sees in what we’ve built,” Peretti said in the memo about the sale. He plans to speak directly with employees on Tuesday about the coming reductions. Allen said his focus will be expanding into free-streaming video, audio and user-generated content.
He suggested BuzzFeed will use AI to compete with YouTube to become another premiere free video streaming service.
Key Facts
Story Timeline
6 events- 2021
BuzzFeed went public through a blank-check merger valued at about $1.5 billion
2 sourcesNew York Post · unattributed facts - 2026 Q1
BuzzFeed reported 12.4% revenue decline to $31.6 million and net loss of $15.1 million
2 sourcesNew York Post · unattributed facts - 2026-05-11
BuzzFeed announces deal for Byron Allen to buy 52% stake and become CEO
3 sourcesNew York Times · New York Post · The Guardian - 2026-05-12
BuzzFeed shares close at $0.71 then soar 156% in extended trading
2 sourcesunattributed facts · New York Post - later this month
Comics Unleashed replaces Late Show with Stephen Colbert on CBS
2 sourcesThe Guardian · unattributed facts - by end of May 2026
Deal expected to close with Allen taking over as CEO
2 sourcesunattributed facts · New York Post
Potential Impact
- 01
Leadership transition ends Peretti era two decades after co-founding
- 02
CBS late-night programming change with Comics Unleashed replacing Stephen Colbert
- 03
Significant cost cuts expected at BuzzFeed and HuffPost, likely including employee layoffs
- 04
Shift toward AI-driven free-streaming video and user-generated content to compete with YouTube
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