Byron Allen strikes deal to buy controlling stake in BuzzFeed and become CEO
Summary
Byron Allen is buying a controlling share in BuzzFeed and will become the company's CEO and chairman. This deal helps BuzzFeed avoid bankruptcy by providing needed funds, with BuzzFeed's founder Jonah Peretti moving to lead a new AI-focused division.Key Facts
- Byron Allen will buy 40 million BuzzFeed shares at $3 each, totaling $120 million.
- Allen's family office, Allen Family Digital, will own 52% of BuzzFeed after the deal.
- Jonah Peretti will transition from CEO to president of a new BuzzFeed AI division.
- BuzzFeed has struggled with debt, falling stock prices, and shrinking revenue.
- The company was at risk of being removed from the Nasdaq stock exchange due to low share price.
- BuzzFeed is making cost cuts and creating a new independent branch for its food brand Tasty and its studios.
- BuzzFeed's value has dropped from $1.7 billion in 2016 to about $28 million now.
- The deal is expected to be completed by the end of May.
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