Byron Allen Takes Over BuzzFeed In $120M Acquisition Deal

Byron Allen’s Allen Media Group has acquired BuzzFeed in a $120 million deal, securing a 52% majority stake and naming Allen as CEO. Founder Jonah Peretti will step down from daily operations to focus on a new AI division, BuzzFeed AI, leveraging recent advancements in artificial intelligence. The acquisition includes $20 million in upfront cash and a $100 million promissory note due in five years. BuzzFeed reported a nearly 20% drop in advertising revenue year-over-year and a $15.1 million loss in the last quarter, prompting the restructuring. The company’s flagship site has seen declining traffic since BuzzFeed News shut down in 2023. Allen plans to pivot BuzzFeed toward streaming video and user-generated content, positioning it as a competitor to YouTube. He has experience restructuring media assets, having previously acquired Weather Channel properties and secured the Late Show time slot on CBS for his *Comics Unleashed* series. As part of the deal, BuzzFeed will spin off its Tasty food brand and studios division into separate entities, potentially leading to future sales. The acquisition reflects broader challenges faced by digital media brands that relied heavily on social platforms like Facebook and Twitter, which altered algorithms to reduce external traffic. Peretti, who once turned down a $650 million offer from Disney in 2014, will oversee the AI-focused division, marking a shift from BuzzFeed’s viral content origins. The restructuring aims to revitalize the brand under Allen’s leadership while addressing its financial struggles.