BuzzFeed has been struggling to stay relevant as ad dollars flow to social platforms. That may be about to change.
Media entrepreneur Byron Allen has agreed to buy a majority stake in BuzzFeed (BZFD) for $120 million, sending the stock up roughly 156% in after-hours trading on Monday.
Allen’s family office vehicle, Allen Family Digital LLC, will acquire 40 million shares at $3.00 per share. That price is a 265.9% premium to where BZFD closed on Friday.
The deal gives Allen Family Digital roughly 52% of BuzzFeed’s outstanding shares, handing Allen effective control of the company.
BuzzFeed’s market cap sat at just $31 million before the announcement, according to LSEG data. The company went public in 2021 via a blank-check merger that valued it at around $1.5 billion. Its stock had fallen more than 98% since then.
Founder and CEO Jonah Peretti will step down from the CEO role once the transaction closes. Allen will take over as both Chairman and Chief Executive Officer.
Peretti isn’t leaving entirely. He moves into a newly created position — President of BuzzFeed AI — suggesting the company sees its AI operations as a key part of what comes next.
The transaction is expected to close by the end of May 2026, subject to standard closing conditions.
The $120 million purchase price won’t all arrive in cash. Allen Family Digital will put up $20 million in cash at closing, with the remaining $100 million covered by a promissory note.
That note comes due five years after closing and carries a 5% annual interest rate.
It’s a deal structure that keeps the immediate cash burden manageable while still giving BuzzFeed a meaningful injection of capital and a new controlling owner.
BuzzFeed also reported its Q1 2026 earnings alongside the deal announcement. Revenue fell 12.4% year-over-year to $31.6 million.
Net losses widened too, coming in at $15.1 million compared to $12.5 million in the same period a year ago.
The company withheld its annual financial forecast and said it would provide an updated outlook in the coming months.
BuzzFeed has been under pressure as advertisers redirect budgets toward platforms like TikTok and Meta’s Instagram, squeezing revenue for traditional digital media publishers.
Q1 revenue of $31.6 million and a widening net loss reflect that ongoing pressure heading into the ownership change.
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