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BuzzFeed gets expansion cash with NBCUniversal tie-up

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AFP Washington
Last Updated : Aug 18 2015 | 10:57 PM IST
BuzzFeed, the website which lives off viral and "shareable" news, got a major boost for expansion plans today with a USD 200 million investment from NBCUniversal.
The deal with NBCU, a division of the media and cable conglomerate Comcast, calls for "strategic partnerships" between the two groups, which could allow sharing of content between BuzzFeed and the vast NBC television operations.
The deal values the "social news" pioneer at some USD 1.5 billion, according to several media reports. The companies did not comment on the valuation terms of the investment.
"It's a fascinating time for the media industry; social, mobile, digital, and broadcast platforms are converging to create new opportunities to connect with global audiences," said Jonah Peretti, BuzzFeed's founder and chief executive.
The deal will "extend our reach to TV and film," Peretti said, without offering any specifics.
Peretti added that BuzzFeed had reached agreements on content sharing with Facebook's Instant Articles, Snapchat's Discover, and Apple's news app, which "allow us to reach a bigger audience and have a bigger impact than what would be possible on our own."

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"All these deals were structured to assure BuzzFeed's continued editorial and creative independence," Peretti said in a blog post. "Equally important, the investment from NBCU and our rapidly growing revenue assures our financial independence."
The news comes just a week after NBCUniversal announced a similar $200 million injection into another digital news group, Vox Media, and highlights the potential seen in online news as consumers move away from traditional media.
The investment follows Monday's announcement that BuzzFeed would launch a Japanese news website in a partnership with Yahoo Japan, the latest step in a global expansion push.
BuzzFeed is one of the largest pure-play digital news websites, claiming to reach some 200 million users worldwide.
With its recent expansion, the group says some 45 percent of traffic now comes from outside the United States, having launched editions in Britain, Brazil, France, Australia, India, Germany, Mexico and Canada.
Launched in 2006 by Huffington Post co-founder Peretti, BuzzFeed was known for offbeat "shareable" news but has been investing in new staff and technology as it expands globally.

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First Published: Aug 18 2015 | 10:57 PM IST

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