Home / Business and Economy / Byron Allen Buys BuzzFeed, Eyes YouTube Rivalry
Byron Allen Buys BuzzFeed, Eyes YouTube Rivalry
27 May
Summary
- Byron Allen now owns over 51% of BuzzFeed.
- He plans to launch a free-streaming platform.
- The acquisition deal was valued at $120 million.
Media entrepreneur Byron Allen has officially taken a majority stake in BuzzFeed, acquiring approximately 51% of its shares for $120 million. He now serves as chairman and CEO, with a clear objective to pivot BuzzFeed towards a free-streaming video platform. This move is positioned as a direct challenge to YouTube's dominance in the digital video space.
Under the new ownership structure, BuzzFeed founder Jonah Peretti has transitioned to the newly established role of 'president of BuzzFeed AI.' In this capacity, Peretti will focus on applied AI research, product innovation, and the development of novel technology-driven media formats. He expressed enthusiasm for Allen's leadership, highlighting complementary skills.
Allen intends to build upon the foundations of BuzzFeed and HuffPost by integrating free-streaming video, audio, and user-generated content. This expansion will be supported by Allen Media Group's Local Now platform and its network of 650 FAST channels. The company anticipates that AI will significantly accelerate content creation and distribution.
The transaction, completed on May 27, 2026, involved Allen Family Digital acquiring 40 million shares at $3 per share. The $120 million deal was financed through $20 million in cash and a $100 million promissory note. BuzzFeed has already allocated $12.5 million of the cash proceeds to reduce existing debt.
