Allen acquires 52% stake in BuzzFeed, assuming CEO role as co-founder Jonah Peretti steps down to focus on AI initiatives.
Byron Allen is set to acquire a majority stake in BuzzFeed for $120 million, taking over as chairman and CEO. The deal involves 40 million shares at $3 each, giving Allen’s firm 52% of outstanding shares upon closing on or about May 26.
Financing includes a $20 million upfront cash payment and a $100 million promissory note maturing in five years at 5% annual interest. BuzzFeed co-founder Jonah Peretti will transition to a new role as president of BuzzFeed AI, relinquishing his executive and board positions.
Allen, founder of Allen Media Group, plans to expand BuzzFeed and HuffPost into free-streaming video and user-generated content, positioning the company as a competitor to YouTube. The transaction marks a shift in leadership as BuzzFeed pursues growth in digital media.