Byron Allen Acquires Controlling Stake in BuzzFeed: $120M Deal Drives Stock to Surge Over 100%

Twelve years ago, BuzzFeed Inc reportedly valued itself at almost $1 billion, scaring off rumored interest from the Walt Disney Company.

Fast-forward to this week, and BuzzFeed is selling a controlling stake to Allen Family Digital for $120 million—$100 million of which isn’t due for five years.

Allen Family Digital, associated with comedian and media mogul Byron Allen, will control about 52% of BuzzFeed’s outstanding shares at $3 each.

BuzzFeed’s shares were up more than 101% to over $1.49 on Tuesday morning. The stock has been trading at under a dollar a share for most of this year.

What the Deal Means for BuzzFeed

As part of the agreement, BuzzFeed CEO and founder Jonah Peretti will transition into a new role as president of BuzzFeed AI. Notably, BuzzFeed’s AI strategy, which included AI-generated quizzes and articles, has faced challenges, as reported by Futurism.

Meanwhile, the title of CEO will transfer to Byron Allen, who is a comedian and the CEO, founder, and chairman of Allen Media Group.

“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,” Peretti said in the announcement.

“To prepare for his arrival, we are planning to make significant changes, including cost reductions and setting up BuzzFeed Studios . . . and Tasty as a new independent entity,” Peretti continued.

Peretti also highlighted Allen’s long-running show, Comics Unleashed, which is taking over Stephen Colbert’s The Late Show slot on CBS. Allen originally found success as a comedian and pays CBS for the airtime, according to the Los Angeles Times. Peretti expressed confidence that Allen’s relationships with talent will bring “some incredible stars” to the BuzzFeed platform.

How Is BuzzFeed Performing as a Company?

BuzzFeed has experienced a significant decline from its mid-2010s peak, when it was valued at nearly $1 billion, according to The New York Times.

The digital media landscape has shifted dramatically in the past decade. Social media platforms like Facebook and Twitter (now X) no longer prioritize external links, instead focusing on keeping users engaged on their own platforms.

The sale announcement coincided with BuzzFeed’s sluggish first-quarter earnings report for 2026. The company reported $31.6 million in revenue—a 12.4% decline year-over-year (YOY).

• Advertising revenue decreased 19.8% YOY.
• Net loss worsened by 22% YOY, rising from $12.5 million to $15.1 million.

During a post-earnings call, BuzzFeed CFO Matt Omer stated that the company would withhold full-year guidance due to the sale.