Media mogul Byron Allen will become the new CEO of BuzzFeed.
The king of media acquisitions strikes again.
Media mogul Byron Allen acquired BuzzFeed, expanding his growing communications empire.
Allen will become BuzzFeed’s new CEO.
Former BuzzFeed News editor-in-chief Ben Smith said, “We were crazy not to sell in 2014,” when the company turned down a $650 million offer from Disney.
Now, the company is worth far less, and Allen is hoping he can return the online publication to its glory years.
Erik Hayden of The Hollywood Reporter reported, “In a $120 million agreement, Allen will take a 52 percent majority stake in the company as well as the CEO role from founder Jonah Peretti, funded by $20 million in cash and $100 million in the form of a promissory note due five years after deal close, which is expected in May. The move was revealed as BuzzFeed reported quarterly earnings that included a nearly 20 percent decline in advertising revenue year-over-year. The company’s net loss for the quarter was $15.1 million, up from $12.5 million last year.
“In addition to the deal with Allen, Peretti has signaled that there will be more cost cuts at BuzzFeed as well as the spinoff of its studios division and food brand Tasty into a separate entity. A move like this could be a precursor to a potential sell off of that division to another interested suitor on the hunt for a unit that once was at the forefront of viral cooking and food videos.”
Peter Kafka of Business Insider said that BuzzFeed once represented the future of media.
Now, it looks like a relic of the not-too-distant past.
Kafka wrote, “A decade ago, BuzzFeed, along with other digital upstarts like Vice and Vox Media, was the new model for media. The pitch: These guys were digital natives who understood how to make stuff millennials liked, and they understood how to work with big internet platforms—Facebook, in particular—which were growing like a weed.
“Investors—including big media companies like Comcast, Disney, and Fox—loved the concept, and valued the companies like high-flying tech startups. At one point, Vox was worth $1 billion, BuzzFeed was worth $1.7 billion, and Vice was theoretically worth $5.7 billion.
“The turn was pretty quick: Facebook turned out to be more of a competitor than a partner, digital advertising turned out to be a very difficult business, and investors lost their taste for the whole sector…
“The company led a flotilla of Millennial news brands—Mashable, Mic and Vice News among them—that built their business upon the idea that they could create viral digital content and distribute it through links from Facebook and Twitter. Zuckerberg, and other tech titans like Twitter/X owner Elon Musk, soon realized it was more advantageous to keep users engaged on their own platforms. Multiple media companies were a casualty of the pivot.”
However, Allen has succeeded in business because he has been able to pivot from one goal to the next when his acquisition bids are unsuccessful.
He also pivoted into a media executive after his stand-up comedy career.
Kafka reported that Allen initially wanted to buy Paramount.
But the BuzzFeed purchase adds to his expanding portfolio.
Not only has Allen continued expanding his kingdom as a media titan, but he also continues the fight that many Black-owned media companies have had to wage to get adequate advertising dollars from corporate America.
In 2025, Allen settled a racial discrimination lawsuit against McDonald’s.
Michael Allen of RegalMag.com reported, “Black-owned media companies have often expressed frustration with getting major corporations to advertise on their platforms despite boasting numbers that should make sponsors salivate.
“While some have limited their frustration to social media posts and speeches, media mogul Byron Allen took his frustrations to the courtroom, accusing the fast-food chain McDonald’s of discriminating against Black media in a $10 billion lawsuit.
“However, Reuters reported, ‘McDonald’s has settled a $10 billion lawsuit by the media entrepreneur Byron Allen accusing the fast-food chain of ‘racial stereotyping’ by excluding Black-owned media from much of the advertising budget…
“‘McDonald’s said it will buy ads ‘at market value’ for Allen’s companies ‘in a manner that aligns with its advertising strategy and commercial objectives…’
“In a statement, Allen’s companies said ‘we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us.”
“The exact terms of the settlement were not released.
“In the lawsuit, Allen alleged that McDonald’s labeled his Entertainment Studios as a Black-owned media company and limited his platforms to the fast-food chain’s “de minimis” ad budget instead of the much larger general advertising budget.
“Many Black-owned media companies do not limit their audience to the Black community.
“Consequently, categorizing them as minority media restricts the advertising revenue they can generate.
“Allen Media Group consists of The Weather Channel, Justice Central, Pets.TV, Cars.TV, Comedy.TV, ES.TV, MyDestination.TV, Recipe.TV and more.
“Also, Allen’s Entertainment Studios has released major motion pictures like ‘Chappaquiddick,’ ‘Hostiles’ and ‘The Case for Christ.’”
