Byron Allen Acquires 51% of BuzzFeed for $120M, Targets YouTube Rivalry
BZFD•Byron Allen’s Allen Family Digital closed acquisition of 51% of BuzzFeed for $120 million, including $20 million cash and a $100 million promissory note due in five years at 5% interest, and paid down $12.5 million of debt. Allen will lead BuzzFeed’s expansion into AI-driven free-streaming video to rival YouTube as Jonah Peretti shifts to president of BuzzFeed AI.
1. Completion of Acquisition
On May 27, Allen Family Digital finalized the purchase of 40 million BuzzFeed shares at $3 per share for a total of $120 million, securing a 51% controlling interest. The transaction consisted of $20 million in cash and a $100 million promissory note due in five years at a 5% annual interest rate, with $12.5 million of proceeds applied to debt reduction.
2. Leadership Changes
Byron Allen has assumed the role of BuzzFeed CEO, succeeding Jonah Peretti after two decades at the helm. Peretti will become president of BuzzFeed AI, focusing on integrating artificial intelligence into content creation and pursuing new media opportunities.
3. Free-Streaming Video Strategy
Under Allen’s direction, BuzzFeed will leverage its new ownership to expand free, ad-supported streaming video and audio services, aiming to compete directly with YouTube. The company plans to integrate AI technologies to accelerate content production, distribution, and discovery, and will collaborate with Allen Media Group’s Local Now platform for localized streaming offerings.
