Byron Allen Is Buying BuzzFeed, Will Become CEO – Variety
TV and media entrepreneur Byron Allen is acquiring a majority stake in BuzzFeed — investing $120 million in the 20-year-old digital media company — and will become CEO. Allen plans to expand BuzzFeed and HuffPost into “free-streaming video, audio and user-generated content.”
BuzzFeed on Monday announced that it entered into a transaction agreement with Allen Family Digital, an affiliate of Byron Allen’s family office, under which BuzzFeed will accept the majority investment.
BuzzFeed CEO Jonah Peretti, who co-founded the company in 2006, will be succeeded by Allen, who will assume the role of chairman and CEO upon closing. At that point, Peretti will transition to a newly created role as “president of BuzzFeed AI.”
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The deal is currently expected to close by the end of May 2026, subject to customary closing conditions.
With the sale to Allen, Peretti said in a statement, BuzzFeed plans to make “significant changes, including cost reductions and setting up BuzzFeed Studios (including vertical micro-dramas, animation, digital video, and premium studio including feature films) and Tasty as a new independent entity.”
BuzzFeed had a peak valuation of $1.7 billion in 2016, after NBCUniversal made a $200 million investment in the company (in addition to a previous $200 million tranche from NBCU). BuzzFeed, which had fueled its growth on viral content, listicles and quizzes, went public in 2021. But it has struggled with years of declining revenue and ongoing net losses — and BuzzFeed’s market capitalization stood at $31 million as of Monday, May 11.
Under the terms of BuzzFeed’s agreement with Allen, his Allen Family Digital will acquire 40 million shares of BuzzFeed at $3/share for a total purchase price of $120 million. (BuzzFeed stock closed at 73 cents/share Monday.) Upon closing, Allen Family Digital will own approximately 52% of the company’s outstanding shares. The purchase price will be funded with $20 million in cash at closing and a $100 million promissory note due five years from closing, accruing interest at 5% annually.
Allen said in a statement, “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 of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content. As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premiere free video streaming service.”
Allen, a former stand-up comedian and TV host, is the founder, chairman and CEO of Allen Media Group, which he founded in 1993 and is headquartered in Los Angeles. Allen owns 13 ABC, CBS and NBC network affiliate broadcast television stations in 11 U.S. markets and 10 HD television networks serving nearly 275 million subscribers (including The Weather Channel, Pets.tv, Comedy.tv, Recipe.tv, Cars.tv, ES.tv, MyDestination.tv, JusticeCentral.tv, TheGrio and HBCU GO).
In addition, Allen has leased a two-hour nightly comedy block on CBS. After “Late Night With Stephen Colbert” ends (May 21), Allen’s “Comics Unleashed” will air in that time slot. When it moves up an hour to replace Colbert’s show, Allen will continue to lease the 12:37 a.m. hour, which will run comedy game show “Funny You Should Ask.” Allen’s time buy deal with CBS is through the 2026-27 TV season.
Peretti called Allen “one of the most accomplished media entrepreneurs in the industry” and said this about the deal giving Allen control over BuzzFeed: “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. And personally, I’m thrilled Byron is taking over ‘The Late Show With Stephen Colbert’s’ time slot, and highly confident that his relationships with talent will bring some incredible stars to the BuzzFeed platform.”
Regarding his new role as president of BuzzFeed AI under Allen’s ownership, Peretti said, “After 20 years as CEO of BuzzFeed, I’m excited to switch my focus to a more hands-on role developing products and technology that are only possible because of recent advances in AI. I’m convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways, and I believe the opportunity is enormous.”
