BuzzFeed (BZFD) Stock Rises 156% as Byron Allen Acquires Majority Stake in $120M Deal

TLDR

• Byron Allen’s family office will acquire a ~52% stake in BuzzFeed for $120 million, purchasing 40 million shares at $3.00 each.
• The $3.00 per share price represents a 265.9% premium to BuzzFeed’s Friday closing price.
• BuzzFeed stock surged roughly 156% in after-hours trading following the announcement.
• Jonah Peretti steps down as CEO; Allen assumes the roles of Chairman and CEO upon closing.
• The deal consists of $20M cash upfront and a $100M promissory note with a 5% annual interest rate, due in five years.

(SeaPRwire) –   BuzzFeed has been struggling to maintain relevance as advertising dollars shift toward social platforms. This situation may be changing soon.

BuzzFeed, Inc., BZFD

Media entrepreneur Byron Allen has agreed to purchase a majority stake in BuzzFeed (BZFD) for $120 million, causing the company’s stock to rise approximately 156% in after-hours trading on Monday.

Allen’s family office, Allen Family Digital LLC, will buy 40 million shares at $3.00 per share—a price that is a 265.9% increase over BuzzFeed’s closing price on Friday.

This transaction grants Allen Family Digital about 52% of BuzzFeed’s outstanding shares, giving Allen full control of the company.

Prior to the announcement, BuzzFeed’s market capitalization was just $31 million, according to LSEG data. The company went public in 2021 through a blank-check merger valued at roughly $1.5 billion, but its stock has since declined by more than 98%.

Leadership Changes at the Top

Founder and current CEO Jonah Peretti will step down from his CEO position once the deal closes. Upon completion, Allen will become both Chairman and Chief Executive Officer.

Peretti will not leave the company entirely. He will transition into a new role as President of BuzzFeed AI, indicating that the company views its artificial intelligence operations as critical to its future direction.

The transaction is expected to close by the end of May 2026, subject to standard closing conditions.

How the Deal Is Structured

The total $120 million purchase price includes both cash and debt financing. At closing, Allen Family Digital will provide $20 million in cash, while the remaining $100 million will be covered by a promissory note.

This note will mature five years after closing and accrue interest at an annual rate of 5%.

This structure allows BuzzFeed to receive significant capital without requiring all funds to be paid immediately, while also bringing in a new controlling shareholder.

BuzzFeed also released its Q1 2026 earnings results alongside the deal announcement. Revenue declined 12.4% year-over-year to $31.6 million.

The net loss widened as well, increasing to $15.1 million compared to $12.5 million during the same period last year.

The company did not issue an updated annual financial forecast and stated it would release a revised outlook in the coming months.

BuzzFeed has faced ongoing pressure as advertisers reallocate their budgets toward platforms such as TikTok and Meta’s Instagram, reducing revenue for traditional digital media publishers.

First-quarter revenue of $31.6 million and a growing net loss illustrate this continued challenge ahead of the ownership transition.