A Reunion of Sorts for BuzzFeed’s CEO
In a move that marks another significant shift in the digital-media landscape, BuzzFeed Inc. has acquired the online news service HuffPost (formerly known as The Huffington Post) from Verizon Communications Inc. As part of this deal, Verizon will acquire a minority stake in BuzzFeed and gain access to the latter’s advertising platform.
The acquisition is being seen as a strategic move by BuzzFeed to expand its reach and influence in the digital media space. For HuffPost, this marks another change in ownership since its inception in 2005. The site was co-founded by Arianna Huffington and has undergone several transformations over the years, including its sale to AOL in 2011 and later Verizon in 2017.
A Broader Partnership
Beyond the acquisition of HuffPost, BuzzFeed and Verizon have also agreed to a broader partnership that will see both companies syndicate each other’s content. This move is part of a larger trend in the digital media industry, where companies are seeking ways to expand their reach and influence through strategic partnerships and acquisitions.
A Healthier Balance Sheet for BuzzFeed
The acquisition values BuzzFeed at approximately $1.7 billion, roughly the same valuation as when Comcast Corp.’s NBCUniversal invested $200 million in the company in 2016. This newfound value is expected to give BuzzFeed a significant boost in terms of its financial stability and flexibility.
According to sources familiar with the matter, BuzzFeed has been working to diversify its revenue streams beyond advertising. The company has made moves into e-commerce, including cookware, and has begun exploring other areas such as media and commerce acquisitions.
A New Era for HuffPost
Under BuzzFeed’s ownership, HuffPost will continue to operate independently with a new editor-in-chief. This decision is seen as a nod to the site’s distinct brand identity and its loyal audience base.
Changing Hands: The Evolution of HuffPost
The acquisition marks yet another change in ownership for HuffPost since its inception in 2005. Here’s a brief look at the site’s evolution:
- 2005: Co-founded by Arianna Huffington, HuffPost (then known as The Huffington Post) became a model for attracting large amounts of web traffic.
- 2011: AOL acquired HuffPost for $315 million, marking its first major change in ownership.
- 2016: Arianna Huffington left the company to focus on her wellness startup, and the site shortened its name to HuffPost.
- 2023: Verizon sells HuffPost to BuzzFeed Inc.
