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BuzzFeed, Inc. Completes Majority Stake Investment by Byron Allen's Family Office, Positioning Company for Next Era of Growth
BuzzFeed, Inc. Completes Majority Stake Investment by Byron Allen's Family Office, Positioning Company for Next Era of
About this update from Buzzfeed, Inc.
[{"type":"text","content":"\nBuzzFeed, Inc. (“BuzzFeed” or the “Company”) (Nasdaq: BZFD) today announced the closing of its previously announced transaction with Allen Family Digital, LLC, an affiliate of Byron Allen's Family Office, under which Allen Family Digital, LLC acquired approximately 51% of the Company's outstanding shares. Byron Allen has assumed the role of Chairman and Chief Executive Officer, and Jonah Peretti has transitioned to his newly created role as President of BuzzFeed AI.\n\n\nUnder the terms of the agreement, Allen Family Digital acquired 40 million shares of BuzzFeed, Inc. common stock at a price of $3.00 per share, representing a total transaction value of $120 million for a total purchase price of $120 million. The transaction was funded with $20 million in cash at closing and a $100 million promissory note due five years from closing, accruing interest at 5% annually. BuzzFeed has used $12.5 million of the cash proceeds from the transaction to pay down existing indebtedness, materially strengthening the Company’s balance sheet and enhancing financial flexibility to support future growth initiatives.\n\n\n“Jonah is a great visionary and has done a phenomenal job. BuzzFeed and HuffPost have become two iconic global digital media brands with powerful audience reach and strong cultural importance,” said Byron Allen, Chairman and CEO of BuzzFeed. “Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content. As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premier free-streaming video service.”\n\n\n“Byron is a force of nature and an incredible media mogul, and his skills are very complementary to mine,” said Jonah Peretti, President of BuzzFeed AI. “His deep relationships with advertisers, partners, and sources of capital free me to focus on what I've always loved most: the intersection of tech and media. I'm thrilled to pass him the baton, and even more excited about what comes next. AI is going to create a new medium for content that wasn't possible before, and I'm convinced the opportunity is enormous.”\n\n\nBuzzFeed is building on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio, and user-generated content powered by AI. The transaction also unlocks the...