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Byron Allen to Take Control of BuzzFeed in $120 Million Deal

The purchase gives the cash‑strapped publisher a lifeline focused on streaming video and AI.

A BuzzFeed sign is seen during the company's debut outside the Nasdaq Market in Times Square in New York City, U.S., December 6, 2021. REUTERS/Brendan McDermid
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Overview

  • Allen Family Digital agreed Monday to buy 40 million BuzzFeed shares at $3 each, a move that would give it about 52% control of the company.
  • Byron Allen will become chairman and CEO when the deal closes, and founder Jonah Peretti will shift to a new role as president of BuzzFeed AI.
  • The $120 million price includes $20 million in cash at closing and a $100 million promissory note due in five years at 5% interest, with closing targeted by the end of May subject to customary conditions.
  • Governance will shift as the board expands and Allen gains the right to name new directors, after Nasdaq waived a shareholder vote that BuzzFeed said could have jeopardized its financial viability following a missed $5 million debt payment.
  • Shares jumped about 156% in after‑hours trading after the announcement, which arrived alongside weak quarterly results and plans for cost cuts and a potential spinoff of BuzzFeed Studios and Tasty.