Media magnate Byron Allen has struck a deal to acquire a majority stake in BuzzFeed for $120 million, marking a dramatic new chapter for the embattled digital publisher. The transaction, executed through his affiliate Allen Family Digital, comes with immediate plans for leadership overhaul and a strategic pivot toward free-streaming video.
Transaction Details
Under the agreement, Allen Family Digital will purchase 40 million shares of BuzzFeed at $3.00 per share, representing approximately 52% of the company's outstanding shares.
The purchase price is structured as $20 million in cash payable at closing, paired with a $100 million promissory note due five years from closing, accruing interest at 5% annually.
The deal is expected to close by the end of May 2025 or May 2026, according to differing reports, and remains subject to customary closing conditions.
Leadership Changes
Upon closing, Byron Allen will assume the roles of chairman and CEO, succeeding BuzzFeed founder Jonah Peretti. Peretti will transition to the newly created position of president of BuzzFeed AI, where he will focus on AI-driven content and technology.
Financial Context
The sale price stands in stark contrast to BuzzFeed's past valuation. In 2014, Disney reportedly offered $650 million for the company. Prior to the announcement, BuzzFeed's market capitalization had plummeted to less than $30 million.
In its most recent quarter, the company reported:
- Revenue of $31.6 million, a decline of 12.4% year-over-year.
- Advertising revenue down nearly 20% year-over-year.
- Net loss of $15.1 million, compared to a $12.5 million loss in the same period the prior year.
In March, the company issued a going concern note, signaling substantial doubt about its ability to continue operating.
Strategic Plans
Allen has outlined an aggressive expansion strategy, intending to transform BuzzFeed and HuffPost into major players in free-streaming video, audio, and user-generated content. Specific plans include:
- Cost reductions across the company.
- Establishment of BuzzFeed Studios, which will produce vertical micro-dramas, animation, digital video, premium studio content, and feature films.
- Tasty will be established as a new independent entity.
- BuzzFeed will offer a free streaming service of over 30,000 movies and TV shows.
- Cross-promotion between Allen's CBS late-night show, BuzzFeed, HuffPost, and Tasty.
"Byron is one of the most accomplished media entrepreneurs in the industry. 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."
— Jonah Peretti, Founder & Outgoing CEO
"Jonah is a great visionary and has done a phenomenal job. BuzzFeed and HuffPost have become two iconic global digital media brands with powerful audience reach and strong cultural importance. Our vision is to build on the iconic foundation by expanding into free-streaming video, audio and user-generated content."
— Byron Allen, Incoming Chairman & CEO
Background
Byron Allen is the founder, chairman, and CEO of Allen Media Group, which owns 13 broadcast TV stations and 10 HD television networks, including The Weather Channel. He recently secured a 16-month lease agreement with CBS for a time slot previously occupied by "The Late Show With Stephen Colbert," where his show "Comics Unleashed" will air.
BuzzFeed was co-founded in 2006 by Jonah Peretti. The company went public in 2021 via a SPAC merger and acquired HuffPost the same year. In 2023, it shut down BuzzFeed News. In 2024, the company fended off a hostile takeover attempt by former Republican presidential candidate Vivek Ramaswamy.
BuzzFeed's site traffic fell to 33 million unique visitors in April 2025, a year-over-year decline.
Allen has stated he wants HuffPost to "go after the Washington Post" with more resources, but noted that more employees are not needed due to AI. He has also declared that BuzzFeed is "chasing YouTube to become another premiere free video streaming service."