business
Byron Allen Acquires Majority Stake in BuzzFeed, Targets Starz
Byron Allen has purchased a majority stake in BuzzFeed for $20 million in cash plus $100 million due in five years. The acquisition adds BuzzFeed and HuffPost to Allen Media Group, which includes Local Now, The Weather Channel and TheGrio. Allen told The Hollywood Reporter that he has taken a notable stake in Starz as he seeks to build both advertising and subscription video-on-demand platforms.
May 14, 11:33 AM·3m read1 source
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Byron Allen has acquired a majority stake in BuzzFeed, the digital media company that also owns HuffPost. The deal values the transaction at $20 million in cash plus an additional $100 million payable five years from now. The acquisition adds BuzzFeed and HuffPost to Allen Media Group’s existing portfolio. TV.
Allen said the goal is to transform Allen Media Group into a company powered by a significant free advertising video-on-demand platform. Local Now, now supplemented with content from BuzzFeed and HuffPost, is intended to serve that role. He also seeks a subscription video-on-demand service to complement the advertising-focused assets.
Allen has taken a notable stake in Starz and identified it as his next target for a full takeover. “SVOD, subscription video on-demand, and AVOD, advertising video on-demand,” Allen said. The move occurs the day after The Late Show ends its 33-year run, with Comics Unleashed beginning on May 22 under a one-season time-buy arrangement.
Colbert contacted Allen after learning of the scheduling change. Allen described their ongoing text exchanges and said Colbert referred to him as the youngest comedian ever to perform on The Tonight Show at age 18. ” He added that he believes Colbert will remain part of the media landscape.
Allen said he did not know all the details of CBS’s decision to end The Late Show, which had been reported to lose $40 million a year. He noted that he has invested about $1 billion to acquire ABC, NBC, CBS and Fox affiliates across the country, including stations in Hawaii and Tucson, Arizona.
