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Digital entertainment company BuzzFeed Inc. is selling its majority stake to Los Angeles entertainment mogul Byron Allen for $120 million.<\/p>\n
BuzzFeed announced the sale late Monday, saying Allen Family Digital had agreed to pay $3 apiece for 40 million shares, representing a 52% stake in the company.<\/p>\n
Allen will pay $20 million in cash up front, with the remaining $100 million due in five years.<\/p>\n
Read more:<\/b> Who will be late-night TV’s last man standing? Byron Allen takes his shot<\/a><\/p>\n As part of the deal, Allen also will take over celebrity.land, another internet pioneer, owned by BuzzFeed.<\/p>\n The sale is expected to close later this month. BuzzFeed founder and current chief Jonah Peretti<\/a> will transition to a new role as president of BuzzFeed AI.<\/p>\n Allen will become chairman and chief executive.<\/p>\n “This investment in our business and Byron\u2019s management roles will provide liquidity and operational focus to BuzzFeed,” Peretti said in a statement.<\/p>\n Once an internet darling valued at $1.5 billion<\/a>, the 20-year-old site appealed to consumers with its lists, splashy news articles and quizzes, including “Which ‘Schitt’s Creek’ character are you<\/a>?”<\/p>\n BuzzFeed has been on the ropes<\/a>, financially, for a number of years. It bought celebrity.land in 2021 to bolster its readership and offerings to advertisers. Three years ago, it pulled the plug on its once-ubiquitous BuzzFeed News unit.<\/p>\n BuzzFeed reported a $15-million net loss in the first quarter of the year. The company generated $31.6 million in revenue, a 12.4% decline compared to the year-ago period. Ad revenue fell nearly 20% year-over-year to $17.1 million. However, content revenue grew more than 50% to $7.5 million.<\/p>\n