BuzzFeed News

BuzzFeed shut down its news division, BuzzFeed News, in April 2023 as part of a 15% reduction in force across the company.¹²³ CEO Jonah Peretti stated that the company could no longer fund BuzzFeed News as a standalone organization due to challenges including the COVID-19 pandemic, tech recession, and a decelerating digital advertising market.¹³ BuzzFeed News had won a Pulitzer Prize in 2021 for international reporting on China's detention of Muslims, but the division was not profitable.¹²

Timeline

Money raised

BuzzFeed raised $3.5 million in Series A funding from Hearst Ventures in July 2008.⁷ BuzzFeed raised $8 million in Series B funding led by RRE Ventures in 2010.⁷ BuzzFeed raised $15.5 million in Series C funding led by New Enterprise Associates in January 2012.⁷ BuzzFeed raised $19.3 million in Series D funding led by New Enterprise Associates in January 2013.⁷ BuzzFeed raised $50 million in Series E funding led by Andreessen Horowitz in August 2014.⁷ BuzzFeed raised $200 million in Series F funding from NBCUniversal in August 2015.⁷ BuzzFeed raised $200 million in Series G funding led by NBCUniversal in November 2016, reaching a $1.7 billion valuation.⁷ BuzzFeed raised nearly $500 million in venture capital funding in total.⁹ BuzzFeed went public via SPAC merger in December 2021, raising $16.2 million.¹⁰ In May 2026, Byron Allen's family office agreed to acquire 52% of BuzzFeed for $120 million, consisting of $20 million cash and a $100 million promissory note.¹¹

Investors named in the sources: Hearst Ventures⁷, RRE Ventures⁷, New Enterprise Associates⁷, Andreessen Horowitz⁷, General Atlantic⁷, NBCUniversal⁷, Redwood Capital⁷, CrossingBridge Advisors⁷, Cohanzick Management⁷, Silver Rock Financial LP⁷, Byron Allen's family office¹¹.

What happened

BuzzFeed was founded in 2006 by Jonah Peretti and John Johnson.⁷¹¹ BuzzFeed started as a side project while Peretti was still at HuffPost.¹¹ BuzzFeed initially focused on fun and lighthearted content like quizzes and listicles.⁷ BuzzFeed launched its news division, BuzzFeed News, in 2012.¹²⁷ BuzzFeed News grew to have more than 100 journalists across the world.¹

BuzzFeed News was a four-time Pulitzer Prize finalist and won the Pulitzer Prize in 2021 for international reporting on China's detention of Muslims.¹² BuzzFeed News also won George Polk Awards for reporting on Facebook's role in disinformation.² BuzzFeed published the Steele dossier in 2017, which contained unverified allegations about then-President Trump.² BuzzFeed was denounced by many journalism experts for publishing the dossier.² BuzzFeed acquired HuffPost from Verizon Media in November 2020.⁷

BuzzFeed went public via a SPAC merger with 890 5th Avenue Partners in December 2021.²⁷¹⁰ BuzzFeed's stock price declined significantly after the IPO, closing at 75 cents on April 20, 2023, down 20%.² BuzzFeed faced challenges including a pandemic, fading SPAC market, tech recession, tough economy, declining stock market, decelerating digital advertising market, and ongoing audience and platform shifts.³ Social media platforms changed their algorithms, giving less focus to news publishers.² BuzzFeed News was not profitable, and economic pressures led to cutbacks that shrunk the unit to about 50 employees.²

Investors pressured CEO Jonah Peretti to shut down BuzzFeed News because it consistently lost money.² CNBC reported that shutting down BuzzFeed News would add up to $300 million of market capitalization to the struggling stock.² In January 2023, BuzzFeed announced a partnership with OpenAI to use ChatGPT for content, but the news division was not included.¹² On April 20, 2023, BuzzFeed announced the shutdown of BuzzFeed News and a 15% reduction in force across the company.¹²³ CEO Jonah Peretti said the company could no longer fund BuzzFeed News as a standalone organization.¹²³

Peretti said he overinvested in BuzzFeed News because he loved their work and mission, but the big platforms wouldn't provide the distribution or financial support required.¹²³ BuzzFeed said it would concentrate its news efforts in HuffPost, which is profitable.¹³ HuffPost and BuzzFeed Dot Com opened select roles for members of BuzzFeed News.¹³ BuzzFeed reduced its real estate footprint in New York and Los Angeles to save costs.¹³ BuzzFeed's Chief Revenue Officer Edgar Hernandez and Chief Operating Officer Christian Baesler exited the company.³

President Marcela Martin took on responsibility for all revenue functions.³ BuzzFeed expected to recognize restructuring charges between $7 million and $11 million, mostly in Q2 2023.³ The NewsGuild of New York, which represented BuzzFeed News employees, criticized the shutdown.² Susan DeCarava, president of the NewsGuild of New York, said management favored short-term returns over long-term investments.² Former BuzzFeed editor-in-chief Ben Smith said the shutdown marked the end of the marriage between news and social media.²

BuzzFeed News was shut down in May 2023.¹⁵ In February 2024, BuzzFeed sold Complex Networks to NTWRK for $108.6 million.¹¹ In December 2024, BuzzFeed sold First We Feast / Hot Ones to a Soros-led consortium for $82.5 million.¹¹ In May 2026, Byron Allen's family office agreed to acquire 52% of BuzzFeed for $120 million.¹¹ Byron Allen became Chairman and CEO of BuzzFeed, and Jonah Peretti became President of BuzzFeed AI.¹¹

Legal outcomes

• dismissedBuzzFeed was sued for defamation by Adam Jones and others over an article, but the case was dismissed.¹⁶
• filedBuzzFeed News reporter Jason Leopold filed a FOIA lawsuit against the CDC and other federal agencies over COVID-19 records.¹⁷
• filedBuzzFeed News investigative reporter Chris McDaniel filed a lawsuit against the Missouri Department of Corrections to witness executions, and a federal appellate court allowed the case to move forward.¹⁷
• filedBuzzFeed News sent a letter to U.S. Customs and Border Protection requesting access to a detention facility in McAllen, Texas.¹⁷
• dismissedA judge ruled that BuzzFeed may have legal protection for publishing the Steele dossier under fair reporting privilege.¹⁷

Where the founders are now

Jonah Peretti became President of BuzzFeed AI after Byron Allen acquired a majority stake in May 2026.¹¹ Byron Allen became Chairman and CEO of BuzzFeed.¹¹

Sources

1. BuzzFeed shutters its newsroom as the company undergoes layoffs, NPR, 2023-04-20
2. BuzzFeed News shutting down as company cuts staff. Journalists 'heartsick', Los Angeles Times, 2023-04-20
3. BuzzFeed News is shutting down after 12 years online - Tech Startups, Tech Startups - Tech News, Tech Trends & Startup Funding, 2023-04-20
7. Buzzfeed IPO: What you need to know about a 2021 SPAC merger, Public
9. BuzzFeed IPO via SPAC Deal, forex.com
10. BuzzFeed Goes Public, Raises $16.2 Million, Warrior Trading, 2021-12-09
11. Byron Allen Buys BuzzFeed: The $20M Behind the $120M Headline, RockWater, 2026-05-22
12. Robots Take Over the BuzzFeed and CNET Newsroom with Varying Results, dot.LA, 2023-01-26
15. BuzzFeed receives third subpoena in ongoing Unsworth-Musk defamation lawsuit, U.S. Press Freedom Tracker
16. JONES v. BUZZFEED INC (2022), caselaw.findlaw.com
17. BuzzFeed Archives - First Amendment Watch, First Amendment Watch

How this case file was put together

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