BuzzFeed (NASDAQ:BZFD) said it has entered into a transaction agreement with media entrepreneur Byron Allen that is expected to result in Allen becoming the company’s chairman and chief executive officer upon closing, marking a significant leadership change as the digital media company reported lower first-quarter revenue and a wider net loss.
Chief Executive Jonah Peretti said on the company’s first-quarter 2026 earnings call that Allen has agreed to make a “significant investment” in BuzzFeed through his family office. Peretti said the transaction is expected to close within the month, subject to customary closing conditions.
Peretti, who has served as CEO for 20 years, said he will move into a newly created role as president of BuzzFeed AI after the transaction is completed. In that role, he said he will focus on developing products and technology enabled by advances in artificial intelligence.
Allen Outlines Expansion Vision
In remarks on the call, Allen said the company’s next chapter will focus on building on BuzzFeed and HuffPost while expanding into free streaming video, audio and user-generated content.
“As of this moment, BuzzFeed is officially chasing YouTube,” Allen said. He added that BuzzFeed is “the perfect platform to deliver free streaming globally using proprietary software and artificial intelligence.”
Allen said the company plans to expand its ability to aggregate, curate and deliver premium video and audio content, while also providing “super hyperlocal, national, and international news.” He said BuzzFeed will pursue growth both organically and through strategic acquisitions.
Allen also said Peretti will lead the company’s work in AI innovation and user-generated content. He said the initiatives, combined with BuzzFeed’s e-commerce, news and content businesses, are intended to position the company as a platform for consumers and digital advertisers globally.
Cost Reductions and Studio Separation Planned
Peretti said BuzzFeed expects to make “significant changes” to prepare for Allen’s arrival and to build a foundation for the company’s new strategy. That includes planned cost reductions aimed at making the core business more efficient.
“This includes planning cost reductions aimed at making our core business more efficient, so we can build new initiatives on top of a profitable core,” Peretti said.
The company also plans to set up BuzzFeed Studios as a new independent entity that will house its premium studio, vertical micro drama and digital video businesses. Peretti said the move is expected to create new opportunities for those assets, provide more operational focus to BuzzFeed Inc. and generate new liquidity.
Peretti said the company’s immediate focus is supporting a smooth transition through the closing process and positioning BuzzFeed for long-term growth.
First-Quarter Revenue Falls 12.4%
Chief Financial Officer Matt Omer said BuzzFeed generated first-quarter 2026 revenue of $31.6 million, down 12.4% from the first quarter of 2025.
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Advertising revenue fell 19.8% year over year to $17.1 million.
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Content revenue increased by $3.1 million, or 69%, to $7.5 million.
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Commerce and other revenue declined 32% year over year to $6.9 million.
The company reported a net loss of $15.1 million for the quarter, compared with a net loss of $12.5 million in the first quarter of 2025. Adjusted EBITDA was negative $7.8 million, compared with negative $5.9 million in the prior-year period.
Omer said BuzzFeed’s primary audience engagement metric, time spent, was 60.6 million hours in the first quarter of 2026, compared with 67.9 million hours in the first quarter of 2025, a 10.7% decline.
Guidance Withheld During Transaction Process
BuzzFeed is not providing full-year guidance while the transaction and related strategic planning are underway. Omer said the company expects to give an update on its strategic direction and financial outlook after the transaction closes.
“Given the ongoing transaction and the strategic work underway, we are withholding full-year guidance at this time,” Omer said.
The company did not take questions on the call. Omer said BuzzFeed expects to discuss its post-closing strategy and financial outlook in greater detail once the transaction is complete.
About BuzzFeed (NASDAQ:BZFD)
BuzzFeed, Inc operates as a digital media and technology company specializing in news, entertainment, and social content. The company produces articles, videos and quizzes that target diverse audiences across web, mobile and social platforms. In addition to editorial content, BuzzFeed offers a suite of advertising solutions, including native advertising, branded content and programmatic display, designed to blend seamlessly with its editorial offerings and engage consumers at scale.
Founded in 2006 by Jonah Peretti and John S.
