Allen Family Digital acquires 40 million shares at $3.00 each, securing majority ownership and leadership roles.
Media entrepreneur Byron Allen’s family office will acquire a majority stake in BuzzFeed (BZFD) for $120 million, positioning Allen as chairman and CEO. The deal includes 40 million shares purchased at $3.00 per share, with $20 million in upfront cash and a $100 million promissory note due in five years.
BuzzFeed has faced liquidity challenges and recently implemented cost reductions and leadership changes. The investment aims to stabilize operations, with plans to spin off BuzzFeed Studios and Tasty as a separate entity to improve focus.
The transaction follows a broader restructuring effort, including asset sales and strategic reviews, to address financial pressures and enhance long-term viability.