BuzzFeed doubles in early trading as media mogul Byron Allen takes controlling stake

Shares of BuzzFeed have almost doubled in premarket trading on Tuesday after the company announced that the family office of media mogul Byron Allen will acquire a controlling stake in the business and use AI to help it to “chase YouTube.”

BuzzFeed shares are up more than 98% in premarket trading on Tuesday, reaching $1.44 apiece. Investors were reacting to the news that Allen Family Digital, an affiliate of Byron Allen’s family office, will acquire a controlling stake in the company.

The firm intends to purchase 40 million BuzzFeed shares at $3 per share. That is four times the stock’s closing price on Monday.

The total value of the transaction is $120 million. Of that amount, Allen Family Digital will pay $20 million at closing, while the remaining $100 million will take the form of a promissory note carrying a 5% annual interest rate and maturing in five years.

The parties expect to complete the transaction by the end of May. Following the deal’s closing, the Allen-affiliated entity will own approximately 52% of BuzzFeed’s outstanding shares, while Allen himself will become the company’s chair and CEO.

Current BuzzFeed CEO and founder Jonah Peretti will transition to the role of president of the newly created BuzzFeed AI division.

Peretti cofounded BuzzFeed with partners in 2006. In 2021, the company announced plans to go public through a merger with SPAC company 890 5th Avenue Partners and acquire Complex Networks as part of the transaction, describing it as “a leading global youth network with unparalleled engagement among millennials and Gen Z.” At the time, BuzzFeed said it would become “the leader of the next generation of media with a strong portfolio of brands,” while the company was valued at $1.5 billion.

BuzzFeed went public in December 2021, with the stock at one point climbing as high as $40 per share.

MarketWatch described BuzzFeed as “the irreverent news website [that] had seemingly cracked the code for social-media virality, and would soon become one of the first digital-media startups to achieve unicorn status with a valuation of over $1 billion.”

Since then, BuzzFeed shares have fallen more than 98%. The company managed to capitalize on the boom in venture-capital investment, but never became profitable, MarketWatch noted.

For the full-year 2025, BuzzFeed reported a 2.4% decline in revenue to $185.3 million, while the net loss widened almost 90% to $57.3 million.

At the same time, the company warned investors about doubts regarding its ability to continue as a going concern, declined to provide guidance for 2026, and announced that it was exploring strategic alternatives. Shortly afterward, BuzzFeed disclosed that it had missed a $5 million debt-payment deadline and delayed the release of its first-quarter financial results.

The company reported its January-March results on Monday alongside the announcement of the Allen Family Digital deal. BuzzFeed’s revenue for the period declined 12% year over year to $31.6 million, while the net loss increased nearly 21% to $15.1 million.

BuzzFeed plans to expand into audio, user-generated content, and free streaming video, which Allen said would help bring the company closer to YouTube, according to comments cited in the press release.

“Byron’s vision, operational experience, and long-term commitment to premium content makes him exceptionally well-positioned to lead BuzzFeed and HuffPost into our next phase of growth. And personally, I'm thrilled Byron is taking over ‘The Late Show With Stephen Colbert’s’ time slot, and highly confident that his relationships with talent will bring some incredible stars to the BuzzFeed platform,” Peretti said.

Allen Media Group, which the media executive founded in 1993, owns 13 ABC, CBS, and NBC affiliate television stations across 11 U.S. markets, ten 24-hour HD television networks, and several streaming platforms.

Peretti also said BuzzFeed plans to reduce costs – though the press release did not specify where costs will be cut – and spin off BuzzFeed Studios, which produces, among other things, vertical micro-dramas, as well as food-focused content brand Tasty.

Only one Wall Street analyst currently covers BuzzFeed. The analyst has a “hold” rating on the stock and a $1.00 per share target price, implying upside of nearly 37% from the stock’s last closing price.