Today, I’m talking with Jonah Peretti, who is, technically, the CEO of BuzzFeed — although that will be coming to an end very soon. Just days before we spoke, Jonah agreed to sell 52 percent of BuzzFeed for a total of $120 million to Byron Allen, who owns The Weather Channel, several broadcast stations, and other websites. The deal is a lifeline for BuzzFeed, once valued at $1.6 billion but recently at risk of running out of cash. Now, new leadership and a focus on AI promise a fresh start.
Jonah Peretti on the Sale
Peretti explained that the company explored several transformative deals and ultimately chose Byron Allen because of his complementary skills. “He is a force of nature, an incredible media mogul,” Peretti said. “His skills complement mine — he excels in deals, advertising, and partnerships, while I focus on technology and innovation.” The deal provides liquidity and resources, allowing Peretti to become president of BuzzFeed AI, focusing on reimagining the company with advanced AI technologies.
Why Now?
The sale comes after BuzzFeed issued a going concern statement, indicating insufficient capital to cover expenses for the year. However, Peretti noted that inbound interest from potential partners and investors was strong. “It was frustrating because we couldn’t discuss exciting prospects publicly,” he said. “This deal with Byron is one of those — it’s transformative and allows us to move forward with confidence.”
Byron Allen’s Vision
Byron Allen, via his company Allen Family Digital, acquires 40 million shares for $120 million, giving him 52% ownership. Peretti steps down as CEO, converting his super-voting shares to common stock. Allen becomes CEO, aiming to compete with YouTube using AI. Peretti describes Allen as a better media executive, focused on deals and partnerships, which are crucial in the current media landscape.
The AI Pivot
Peretti’s new role involves integrating AI across BuzzFeed’s operations. “AI can act like a nervous system, detecting what works and pushing creative challenges,” he said. New apps like BF Island and Conjure leverage generative AI for social interaction and daily challenges. Peretti emphasized that AI enables rapid iteration and product evolution, reducing costs over time.
Lessons from the Past
Reflecting on the original sin of digital media — betting on viral content to secure platform payments — Peretti admitted it was short-lived. “Facebook and YouTube paid for content initially, but then creators exploded, reducing our leverage,” he said. He criticized platforms for not sustaining payments for professional content, arguing it hurt the ecosystem. Now, BuzzFeed focuses on direct traffic and monetization through commerce, memberships, and freemium AI apps.
Dealing with Creators
Peretti acknowledged the challenge of retaining talent in a creator-driven economy. “Top creators can earn more independently, breaking the cycle of development,” he said. However, he sees opportunity in user-generated content and collective talent models, where AI tools empower creators without replacing human judgment.
What’s Next?
The deal is expected to close by the end of the month. Peretti remains excited about AI’s potential to create new media forms, despite Gen Z skepticism. “People dislike AI in abstract, but they love the apps it enables,” he said. With Allen’s deal-making prowess and Peretti’s tech vision, BuzzFeed aims to carve out a niche in the evolving digital landscape.
