But as social-media companies tweaked their algorithms to make it harder for such posts to be widely viewed organically, BuzzFeed turned to more traditional forms of digital ads, including “programmatic,” or automated auctions, as well as e-commerce and content licensing.įueled by venture capital, BuzzFeed enjoyed 50% annual revenue growth in its earlier years. Initially, BuzzFeed focused on making money from native advertising-ads that mimic the tone and style of editorial content. Originally dominated by light fare such as quizzes and “listicles,” the site hired prominent political journalistĪway from Politico in 2012 to build out an ambitious news division that produced work nominated for the Pulitzer Prize. Peretti co-founded BuzzFeed in 2006, after several years of studying what made things go viral on the internet. Verizon’s efforts to improve the digital media side of its business failed to gain traction, and in 2018, Verizon wrote down the value for much of that business. In 2015, Verizon acquired AOL for $4.4 billion, taking on HuffPost in the transaction. In 2011, AOL bought the Huffington Post for $315 million-an eye-popping price for its day- as part of then-CEOīid to turn around the struggling web portal. Verizon and BuzzFeed will share ad revenue on content syndicated across each others’ sites, according to a person familiar with the matter. “From the get-go, I was pretty clear that BuzzFeed was the right partner,” Mr.
The two companies have been hashing out deal terms for several months. The talks accelerated later in the year when Verizon Media began exploring options for HuffPost. During the meeting, the two executives discussed ways the two companies could work together but didn’t reach an agreement on a deal for HuffPost, he said. Peretti at the CES tech show in Las Vegas earlier this year.
Said the idea for a partnership between Verizon and BuzzFeed hatched during a meeting with Mr. But this is not about nostalgia for me, it’s about the future, the brand and the audience.” “So I have a deep connection to that brand because of the history.
“For several years, I spent my every waking moment on HuffPost and how to grow it and how to turn it into a leading media brand on the internet,” Mr. The site became an early traffic powerhouse, partly thanks to its mastery of how audiences search for news stories on Google.
Huffington’s Rolodex of celebrity friends, whom she often convinced to blog for free. It launched as a liberal alternative to popular aggregators like The Drudge Report, initially leaning on the strength of Ms. He was among the founders of the site in 2005-then called the Huffington Post-alongside Peretti, the deal with HuffPost is a homecoming of sorts. HuffPost drew 36 million visitors in October, according to Comscore, a decline of about 5% compared with the year-earlier period.įor Mr.
BuzzFeed’s traffic was down nearly 23% to 69 million unique visitors in October, compared with the same period last year, according to web analytics firm Comscore. Peretti said HuffPost attracts readers from wealthier demographics.īuzzFeed and HuffPost are combining amid a slump in web traffic for both properties. Peretti said BuzzFeed executives will undertake a review of HuffPost’s business before making any significant moves, such as cutting staff or hiring additional employees. The company has saved money through layoffs, furloughs and other cuts. BuzzFeed has explored other possible acquisitions, according to people familiar with the matter.īuzzFeed expects to turn an operating profit this year for the first time in years, Mr. Last year, Vice Media acquired Refinery29, Vox Media acquired New York Media and GroupNine Media Inc. While some publishers have found success developing revenue from subscriptions and e-commerce, many players in the sector have pursued mergers to chart a path forward. The coronavirus pandemic delivered another blow this year. The business became more challenging as tech goliaths New-media companies like BuzzFeed and HuffPost were growing at breakneck speed a few years ago, as online readers flocked to fast-paced delivery of news, lifestyle and entertainment content, and advertising dollars followed. Financial terms for the deal weren’t disclosed, including the valuation for HuffPost. In a joint statement, the companies said BuzzFeed and HuffPost have complementary audiences and will benefit from greater scale.