BuzzFeed, the digital media pioneer once valued at $1.7bn, has been sold to media entrepreneur Byron Allen for $120m. The company announced on Monday that Allen's Allen Media Group has acquired a controlling stake. Allen, known for hosting "Comics Unleashed" and owning networks like The Weather Channel, will take over as CEO from founder Jonah Peretti, who will remain as president of BuzzFeed AI. BuzzFeed also owns HuffPost.
Allen's Vision and Cost Cuts
Peretti stated that Allen's vision and operational experience make him well-suited to lead BuzzFeed and HuffPost into their next phase of growth. He also noted that "significant" cost cuts are planned, which often lead to layoffs. Allen aims to expand into free-streaming video, audio, and user-generated content, leveraging AI to compete with YouTube.
Financial Struggles and Stock Performance
BuzzFeed went public in late 2021, but its stock price has plummeted. As of Monday, shares traded at $0.71. However, Allen is buying 40m shares at $3 each, indicating confidence. The company reported a net loss of $15m in the first quarter of 2026.
In an internal memo, Peretti said he would address employees about cost reductions. BuzzFeed's competitors, Vice Media and Vox Media, have also faced financial challenges. Vox Media is reportedly considering a sale, with James Murdoch as a potential buyer.
