Byron Allen has bought a controlling stake in BuzzFeed for $120 million, marking a major turn for the digital media company once valued at $1.7 billion. The deal places Allen in the chief executive role, while founder Jonah Peretti moves to president of BuzzFeed AI. The transaction also comes as BuzzFeed prepares major cost cuts and separates BuzzFeed Studios and Tasty into a new independent company.
BuzzFeed announced Monday that Allen, the media entrepreneur behind Allen Media Group, will take over the company. His group owns networks, including The Weather Channel, alongside digital outlets such as Pets. TV and Comedy.TV.
Allen also works as an on-screen personality. His show, Comics Unleashed, will replace The Late Show with Stephen Colbert on CBS’s schedule later this month. Peretti said Allen’s experience and long-term focus on content positioned him to guide BuzzFeed and HuffPost into another growth phase. He also said Allen’s ties with talent could bring more stars to BuzzFeed’s platform.
As part of the deal, Allen will buy 40 million shares at $3 each. BuzzFeed’s stock traded at $0.71 per share on Monday evening. 'That says something about what he sees in what we’ve built,' Peretti said in an internal memo obtained by the Guardian.
The central question now is whether Allen can turn BuzzFeed’s traffic-driven media brand into a stronger streaming and content business.
BuzzFeed enters the sale after several years of financial pressure. The company bought HuffPost in 2021 to expand its audience and improve its advertising offer. Three years ago, BuzzFeed shut down BuzzFeed News. That move ended one of its most visible media units after years of losses and industry pressure.
In the first quarter, BuzzFeed reported a $15 million net loss. Revenue reached $31.6 million, down 12.4% from the same period a year earlier. Advertising revenue also fell nearly 20% year over year to $17.1 million. Still, content revenue rose more than 50% to $7.5 million.
Ahead of Allen’s arrival, Peretti said BuzzFeed will make 'significant' cost cuts. Such reductions often include employee layoffs. Peretti also told employees he would discuss the planned cuts directly on Tuesday. Meanwhile, BuzzFeed Studios and Tasty will spin off into a separate independent entity.
Allen said his plan centers on free-streaming video, audio, and user-generated content. He said BuzzFeed will chase YouTube as it tries to become another major free video streaming service. The plan also includes artificial intelligence. Allen suggested BuzzFeed would use AI as part of its effort to compete in free video streaming.
His move comes during a busy period for Allen Media Group. Earlier this month, Allen sold television stations in nearly a dozen markets to Gray Media for about $170 million. Even after that sale, Allen still owns 13 network-affiliate stations in nearly a dozen markets. He also owns 10 HD television networks and The Weather Channel’s linear cable channel.
BuzzFeed’s sale follows a wider reset across digital media. Vice Media and Vox Media have also faced financial strain after relying on large online audiences built through social platforms. Vox Media is reportedly considering selling parts of its business. James Murdoch, son of Rupert Murdoch, has emerged as a leading potential buyer.