Byron Allen Agrees to Buy Majority Stake in BuzzFeed for $120 Million

Media mogul Byron Allen has agreed to pay $120 million for a majority stake in BuzzFeed, the digital media company announced Monday. The deal will give Allen a controlling interest in the company. BuzzFeed co-founder Jonah Peretti will step down as chief executive under the agreement and transition to the role of president of A.I. The transaction values the once high-flying digital publisher well below its $1.5 billion valuation when it went public through a SPAC merger in 2021.

BuzzFeed has struggled with declining advertising revenue and steep losses in recent years as it attempted to pivot toward e-commerce and other revenue streams.

The company said the investment from Allen will provide capital to support its operations and strategic initiatives. Specific details about the exact size of the stake or remaining ownership for existing shareholders were not disclosed in initial announcements.

Peretti's move to president of A.I. reflects the company's increased focus on artificial intelligence tools for content creation and personalization. He co-founded BuzzFeed in 2006 and has led it through periods of explosive growth followed by contraction.

The company has undergone multiple rounds of layoffs and asset sales to stem losses while experimenting with new business models. Its news division was shuttered last year as part of cost-cutting measures. The remaining operations center on lifestyle content, quizzes and entertainment verticals that originally built the brand's audience.

Allen, whose portfolio includes television networks and production companies, brings experience in traditional media to the digital publisher. The investment represents a bet that BuzzFeed's audience and content library retain value even as the broader industry consolidates.

“Byron Allen has agreed to pay $120 million for a majority stake in the digital media company.”

The deal comes as the digital media sector continues to grapple with shifts in audience behavior and competition from technology platforms. Several once-independent publishers have been acquired by larger entities or seen major ownership changes in the past two years.

Financial terms beyond the $120 million headline figure were not immediately available. The transaction is subject to customary closing conditions and is expected to complete in the coming months.

BuzzFeed's trajectory mirrors challenges faced by many digital-first publishers that scaled rapidly during the 2010s. Changes in social media algorithms reduced traffic from platforms that once drove massive audiences to sites like BuzzFeed. The company's pivot toward A.I. under Peretti's new role signals an attempt to leverage technology for efficiency and innovation.

How successfully the new ownership integrates these tools will likely determine the company's next chapter.