Byron Allen to Take Control of BuzzFeed in $120 Million Deal, Replacing Founder Jonah Peretti as CEO

Media entrepreneur Byron Allen has agreed to buy a majority stake in BuzzFeed for $120 million, a transaction that will install him as chairman and chief executive while moving founder Jonah Peretti into a newly created role focused on artificial intelligence.

The Details

BuzzFeed announced Monday that Allen Family Digital will purchase 40 million shares at $3.00 each, for a total consideration of $120 million. The company said the acquisition would give Allen Family Digital approximately 52 percent of BuzzFeed's outstanding shares once the transaction is completed.

According to the announcement, Byron Allen will become chairman and chief executive officer at closing. Jonah Peretti, who co-founded BuzzFeed in 2006 and has served as chief executive since its founding, will move to a newly created position as president of BuzzFeed AI.

The New York Times separately reported that Allen is buying a controlling stake for $120 million and that Peretti will step down as CEO to become president of AI.

The Hollywood Reporter provided additional detail on the financing structure, noting that the transaction is funded by $20 million in cash and a $100 million promissory note due five years after closing.

The deal is expected to close by the end of May 2026, subject to customary closing conditions. BuzzFeed said the company is also planning cost reductions as part of the transition and intends to restructure BuzzFeed Studios and Tasty as independent entities.

Context

The acquisition comes as BuzzFeed faces sustained financial pressure across its core business lines. The company reported first-quarter 2026 revenue of $31.6 million, a decline of 12.4 percent year over year, with a net loss of $15.1 million. The Hollywood Reporter separately noted that BuzzFeed's advertising revenue fell by nearly 20 percent year over year, underscoring the revenue challenges that have accompanied the digital media company's efforts to stabilize its business in a shifting advertising market.

In a statement included in the deal announcement, Byron Allen outlined an ambitious vision for the company's future. "Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content," Allen said. "As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premiere free video streaming service."

Jonah Peretti praised Allen's track record in the same announcement. "Byron Allen has built one of the world's largest media companies and is one of the most accomplished media entrepreneurs in the industry," Peretti said.

Allen's existing media holdings provide a substantial platform for the expansion he described. Allen Media Group owns local television stations, the Weather Channel and other broadcast and streaming networks, giving Allen an established footprint across multiple distribution channels and a track record of building media properties at scale.

The announcement did not specify the scale of the planned cost reductions or the exact structure under which BuzzFeed Studios and Tasty would operate as independent entities, leaving open questions about how the restructuring would affect staffing and content production.

What's Next

The deal is expected to close by the end of May 2026, subject to customary closing conditions. Upon completion, Allen will assume day-to-day control as chairman and CEO while Peretti shifts to leading the company's AI initiatives.

BuzzFeed has indicated that cost reductions and the restructuring of BuzzFeed Studios and Tasty into independent entities are part of the broader transition plan. Allen's stated goal of expanding into free-streaming video, audio and user-generated content, combined with his declaration that BuzzFeed will chase YouTube to become a premiere free video streaming service, signals a significant strategic pivot for the company if the deal closes as anticipated.

The transaction would mark the end of Peretti's nearly two-decade tenure as chief executive and the beginning of a new chapter under Allen's majority control, with the proposed financing structure — including the $100 million promissory note due five years after closing — suggesting a long-term commitment to reshaping the digital media company.