Byron Allen is acquiring a majority stake in BuzzFeed for $120 million and will become the company's chairman and CEO, BuzzFeed said Monday.
The purchase involves 40 million BuzzFeed shares at $3 apiece, a filing with the Securities and Exchange Commission shows, with the transaction leaving Allen Family Digital holding roughly 52% of outstanding shares once it closes. Financing consists of an upfront cash payment of $20 million, with the remaining $100 million carried as a promissory note that matures in five years and accrues interest at an annual rate of 5%. Closing is expected on or about May 26.
On the date the deal closes, Peretti — who co-founded BuzzFeed — will give up both the chief executive role and his chairmanship of the board, moving instead into a newly created position carrying the title president of BuzzFeed AI. Byron Allen, 65, has served as founder, chairman, and CEO of Allen Media Group since founding the company in 1993. His holdings include The Weather Channel, 13 broadcast television network affiliate stations across 11 U.S. markets, and 10 HD television networks.