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Allen Family Digital Takes Over BuzzFeed
Courtesy of BuzzFeed
Media entrepreneur Byron Allen is taking over BuzzFeed in a $120 million deal.
The Big Picture: At one point, BuzzFeed was considered one of the internet’s crown jewels — and nearly sold to Disney for $650 million. The digital economy has changed quite a bit since that offer in 2013. BuzzFeed has pivoted a lot to shore up its revenue, but it became increasingly clear the company would eventually need a lifeline. It’s officially the end of an era.
Behind The Listicles: Byron Allen has made many M&A plays in recent years… and has finally landed a distressed asset.
Allen Family Digital, part of Byron Allen’s family office, is acquiring 52% of the company with $20 million in cash and a $100 million promissory note due in five years.
Allen will assume the role of CEO, while founder and former CEO Jonah Peretti will transition to president of BuzzFeed AI.
The deal is expected to close by the end of the month.
Final Deal Points: Allen, who controls several TV stations and 10 network channels, has been looking to level up for some time. He’s been involved in bids for everything from BET to Paramount to ABC. While none of those efforts have succeeded, they underscore Allen’s ambition to build a media empire — and his tendency to circle any major media auction like a shark in the water. He’s even taking over The Late Show’s time slot on CBS once the program ends its run, replacing it with a two-hour comedy block.
With BuzzFeed, Allen now has a platform he can remake in his own image.
The Future: Given Peretti’s focus on AI, it’s possible Allen is looking to build a media brand centered on AI-generated content that can be repackaged and distributed across other platforms.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.