BuzzFeed sells to Byron Allen in major shake-up

A major digital media player is changing hands. BuzzFeed Inc. , once a high-flying online powerhouse, is selling its majority stake to entertainment entrepreneur Byron Allen for $120 million. The deal covers 52% of the company, with Allen acquiring 40 million shares at $3 each. He kicks off the deal with $20 million in cash and agrees to pay the remaining $100 million over the next five years. As part of the bargain, Allen takes control of BuzzFeed's news site HuffPost, marking a fresh chapter for the pioneer once known for viral quizzes and listicles. BuzzFeed hasn't been in great shape lately. Founded two decades ago, it grew popular with quick reads like “Which ‘Schitt’s Creek’ character are you? ” and flashy online stories. But those buzz-worthy days are fading. A few years back, BuzzFeed News shut down after years of losses. Despite trying to expand by buying HuffPost in 2021, the company still posted a $15 million loss in the first three months of this year. Revenue dropped by 12% compared to last year, with advertising income sliding almost 20%. Still, BuzzFeed saw some growth in content revenue, jumping over 50% to $7. 5 million.Things aren't over yet—BuzzFeed plans to cut more costs soon before Allen's takeover. The company also plans to split off BuzzFeed Studios and Tasty into a separate independent company, possibly to focus on fresh growth areas. Founder Jonah Peretti, who’s been leading BuzzFeed, will step into a new role as president of BuzzFeed AI. Allen isn't slowing down anytime soon. Before this deal, he sold TV stations in nearly a dozen markets for about $170 million. Now, he’s preparing to take over CBS' late-night lineup, replacing “The Late Show with Stephen Colbert” after CBS made changes. Allen still holds several TV stations, the Weather Channel's cable and digital platforms, plus digital channels like Pets. TV and Comedy. TV. His next steps could reshape BuzzFeed and its future direction.