Media mogul Byron Allen has swooped in to rescue a digital media icon teetering on the edge of collapse, acquiring a majority stake in BuzzFeed for $120 million and taking over as chairman and CEO.
Allen Family Digital, an affiliate of Allen’s family office, will purchase 40 million shares at $3 per share, giving it approximately 52% of the company’s outstanding shares. The deal, expected to close by end of May, is structured with $20 million in cash upfront and a $100 million promissory note due in five years at 5% annual interest.
The acquisition arrives at a critical moment for the 20-year-old company. BuzzFeed recorded a net loss of $57.3 million in 2025 and acknowledged it lacked sufficient resources to meet its cash obligations over the next year. The company’s struggles are years in the making: after going public in 2021, BuzzFeed shut down its Pulitzer Prize-winning newsroom in 2023, underwent multiple rounds of layoffs, and sold Complex Networks in 2024. Full-year 2025 revenues came in at $185.3 million, down 2.4% from the prior year, with advertising revenue slipping nearly 3%.
Allen, who built Allen Media Group into a broadcast powerhouse owning 13 network affiliates and 10 HD television networks, sees an opportunity where others see wreckage.
“BuzzFeed and HuffPost have become two iconic global digital media brands with powerful audience reach and strong cultural importance,” he said. “As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premiere free video streaming service.”
Founder Jonah Peretti, stepping aside after two decades as CEO, will lead a newly created “BuzzFeed AI” division. “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,” Peretti said. “I’m convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways.”
Plans include launching BuzzFeed Studios — covering micro-dramas, animation, and feature films — and spinning off food brand Tasty as an independent entity.
