BuzzFeed, Inc. (NASDAQ:BZFD) shares skyrocketed more than 135% in after-hours trading on Monday after the company announced a proposed majority stake investment from Byron Allen’s family office alongside a major leadership transition and AI-focused restructuring plan.
Inside The $120 Million Investment Deal
BuzzFeed entered into an agreement with Allen Family Digital, LLC, an affiliate of Byron Allen’s family office. Allen is the founder of Allen Media Group, which owns multiple television networks, streaming platforms, and local broadcast stations across the U.S. Under the agreement, the firm will acquire 40 million shares of BuzzFeed at $3.00 per share for a total transaction value of $120 million.
Upon closing, Allen Family Digital is expected to own approximately 52% of BuzzFeed’s outstanding shares, effectively giving Byron Allen control of the company.
The transaction includes a $20 million cash payment at closing along with a $100 million promissory note carrying a 5% annual interest rate and due over five years. The deal is …
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