Why Did BuzzFeed Stock More Than Double And Top After-Hours Gains?

• Allen is also slated to take over as CEO and chairman at BuzzFeed.
• Founder and current CEO Jonah Peretti will transition to a newly created role as President of BuzzFeed AI.
• Meanwhile, Allen plans to expand Buzzfeed into free-streaming video, audio and user-generated content.

Shares of BuzzFeed Inc. (BZFD) soared nearly 120% in after-hours trading on Monday, topping gains across U.S. exchanges in that period, after the company revealed that media mogul Byron Allen will take a majority stake in the company and step up as chairman and CEO.

In a statement, the digital media company said that Allen’s family office, Allen Family Digital, LLC, will acquire 40 million shares in the company valued at $120 million.

Retail sentiment around BZFD improved from ‘bullish’ to ‘extremely bullish’ territory after the announcement, as the stock retained gains heading into overnight trading.

BuzzFeed’s New Deal: The Fine Print

The American media mogul, comedian, and television producer, whose company Allen Media Group (AMG) owns 13 local broadcast stations, more than 10 HD networks, as well as The Weather Channel, TheGrio, and other networks like Pets.tv, Comedy.tv, and Cars.tv, will pay $3 per share to acquire 52% of BuzzFeed.

The deal, which is expected to close by the end of May, will be funded with $20 million in cash and a $100 million promissory note due five years from closing at 5% annual interest.

Allen plans to expand Buzzfeed into free-streaming video, audio, and user-generated content, setting up the company to chase “YouTube to become another premier free video streaming service.”

What BuzzFeed’s Leadership Transition Will Look Like

Allen is also slated to take over as CEO and chairman at BuzzFeed, while founder and current CEO Jonah Peretti will transition to a newly created role as President of BuzzFeed AI.

Peretti is expected to help the company with applied AI research, product innovation, and the development of new technology-driven media formats.

“After 20 years as CEO of BuzzFeed, I’m excited to switch my focus to a more hands-on role developing products and technology that are only possible because of recent advances in AI. I’m convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways, and I believe the opportunity is enormous,” Peretti said in a statement.

Meanwhile, BuzzFeed is planning significant changes ahead of Allen’s arrival, including establishing BuzzFeed Studios for vertical micro-dramas, animation, digital video, and feature films, as well as making its digital food network, Tasty, a new independent entity. The company is also planning cost cuts, it said.

BuzzFeed Q1 Earnings Summary

The New York-based company also posted first-quarter (Q1) results, reporting a 12.4% decline in quarterly revenue to $31.6 million, below Wall Street expectations of $35.08 million, according to data from Fiscal.ai.

The company said that its advertising revenue had declined 19.8% year-over-year, while content revenue increased. BuzzFeed reported a wider net loss of $15.1 million, compared to a net loss of $12.5 million in Q1 2025.

BuzzFeed withheld its 2026 guidance due to the deal with Allen.

What Retail Traders Feel About BuzzFeed

On Stocktwits, retail chatter jumped from ‘low’ to ‘extremely high’ levels after the announcement.

One bullish user cheered the “GREAT news,” adding the company’s stock was looking “perfect for tomorrow.”

Another bullish user said, “Tomorrow and in the days ahead we should see $3.00 to $5.00 considering Byron Allen just paid $3.00 per share!” BuzzFeed shares were trading around $1.57 at the time of writing.

The stock has slumped more than 61% in the last 12 months.

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