Byron Allen strikes deal to buy controlling stake in BuzzFeed and become CEO

Correction: Time range was corrected to reflect BuzzFeed's time as a public company. Data: Financial Modeling Prep ; Chart: Christine Wang/Axios Byron Allen , a media entrepreneur known for aggressively trying to roll up various media assets, on Monday announced a deal to buy a majority stake in BuzzFeed. Why it matters: The deal gives the 20-year-old digital publisher a much-needed lifeline. Without a buyer, the company likely would've been forced to file for bankruptcy . BuzzFeed's stock has been trading under $1, and the company was warned earlier this year it is at risk of being delisted from the Nasdaq for falling below that threshold. It received a similar notice in 2023 and subsequently approved a reverse stock split to boost its share price and maintain its listing. Its business has been under enormous pressure from expensive debt and shrinking revenue. Zoom in: Under the deal, Allen will become CEO and chair of the company. BuzzFeed's founder and longtime CEO Jonah Peretti will move to a new role as president of BuzzFeed AI. Allen will complete the purchase through his family office, Allen Family Digital, and not his private media company, Allen Media Group. AMG houses The Weather Channel, several local broadcast stations and other media assets. State of play: In a statement , Peretti said BuzzFeed is making "significant changes, including cost reductions" ahead of the deal, that — combined with Allen's new role and investment — "will provide liquidity and operational focus to BuzzFeed, Inc." Peretti said BuzzFeed is establishing a new independent entity for food-focused social media brand Tasty and BuzzFeed Studios, which produces vertical micro-dramas, digital video and premium films. The company didn't offer many details on Peretti's newly created role as president of BuzzFeed AI. By the numbers: Allen Family Digital will hold 52% of BuzzFeed's outstanding shares after the deal to buy 40 million shares at $3 each, f...

Original source: Axios