Media Mogul Byron Allen Takes Control of BuzzFeed in $120M Deal

Media entrepreneur Byron Allen is set to acquire a majority stake in BuzzFeed in a $120 million deal that will make him the company’s new chairman and chief executive officer. The announcement sent BuzzFeed’s shares soaring by nearly 156% in after-hours trading as investors welcomed the move as a potential lifeline for the struggling digital media firm.

BuzzFeed announced that Allen’s family office affiliate, Allen Family Digital, will purchase 40 million shares of the company at $3 per share, giving him approximately 52% ownership once the deal closes later this month. The agreement includes an upfront cash payment of $20 million, while the remaining $100 million will be financed through a promissory note due in five years with 5% annual interest.

As part of the leadership transition, BuzzFeed founder Jonah Peretti will step down as CEO after two decades and move into a newly created role as President of BuzzFeed AI, focusing on artificial intelligence-driven products and technology.

Allen said he plans to expand BuzzFeed and HuffPost into free-streaming video, audio, and user-generated content as part of a broader effort to revive the company’s growth.

BuzzFeed, once considered one of the biggest success stories in digital media, has struggled financially in recent years amid falling advertising revenues and increased competition from platforms such as TikTok, YouTube and Instagram. The company shut down BuzzFeed News in 2023 and has faced mounting losses since going public through a SPAC merger in 2021.

The company also released its first-quarter 2026 financial results alongside the acquisition announcement. Revenue fell 12% year-over-year to $31.6 million, while net losses widened to $15.1 million. BuzzFeed had previously warned investors about concerns surrounding its financial stability after missing a debt payment earlier this year.

Allen, who owns Allen Media Group and media assets including The Weather Channel, has spent years expanding his media empire through acquisitions and investments across television, streaming and digital publishing. Analysts say the BuzzFeed acquisition could help stabilize the company while accelerating its shift toward AI-driven and streaming-focused content.

Despite the rally in its share price, BuzzFeed remains far below its peak valuation during the digital media boom of the 2010s, highlighting the broader challenges facing online publishing companies worldwide.