Byron Allen is taking over BuzzFeed in a $120 million deal — and becoming its CEO |
Byron Allen is taking over BuzzFeed in a $120 million deal — and becoming its CEO
Allen Family Digital will acquire 52% of the digital media company, with BuzzFeed founder Jonah Peretti stepping down as CEO
SOPA Images / Getty Images
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........