BYRON Allen has snapped up BuzzFeed in a $120 million deal, stepping in as the new CEO as the digital media giant struggles with falling ad revenues.
The media mogul, known for hosting Comics Unleashed and owning assets like The Weather Channel, will take a 52 percent majority stake in BuzzFeed.
Founder Jonah Peretti will step back from day-to-day running to focus on BuzzFeed’s AI projects, signalling a shift in the company’s strategy.
BuzzFeed’s recent earnings showed a 20 percent drop in ad revenue and a net loss rising to $15.1 million, highlighting the challenges it faces in a changing digital landscape.
The deal includes $20 million upfront and a $100 million promissory note due in five years, marking a significant drop from BuzzFeed’s peak valuation.
Peretti has also announced plans to spin off BuzzFeed Studios and the Tasty brand, possibly preparing them for separate sales.
BuzzFeed’s heyday came when viral content thrived on Facebook and Twitter, but the rise of TikTok and Instagram’s video-first algorithms has hit its traffic hard.
The site’s unique visitors dropped to 33 million in April, well behind rivals like People and USA Today.
Allen’s acquisition fits his pattern of buying and revitalising media properties, having previously taken over The Weather Channel and local TV stations.
With Allen at the helm, BuzzFeed aims to pivot towards video streaming and premium content to regain its footing.
Peretti praised Allen’s track record, saying his vision and experience make him the right person to lead BuzzFeed and HuffPost into their next growth phase.
Allen also expressed admiration for Peretti’s legacy and optimism about the future, including leveraging talent relationships to boost BuzzFeed’s profile.
The deal closes this month, marking a new chapter for BuzzFeed as it navigates the evolving digital media world.