BuzzFeed: NBCUniversal Invests $200 Million To Social News Site
BuzzFeed is getting a rather large investment from NBCUniversal.
According to the Los Angeles Times, the entertainment company, NBCUniversal, has agreed to make a $200 million equity investment into the social news site, BuzzFeed, which has 200 million monthly visitors and one and a half billion monthly video views.
“BuzzFeed has built an exceptional global company that harmonizes technology, data and superior editorial abilities to create and share content in innovative ways,” said NBC Universal Chief Executive Steve Burke. “They reach a massive, loyal audience and have proven to be among the most creative, popular and influential new media players. We are pleased to be making this investment and for our companies to partner and work together.”
BuzzFeed Confirms $200M Investment From NBCUniversal http://t.co/vAWYkup8Ot by @anthonyha
— TechCrunch (@TechCrunch) August 18, 2015
The collaboration was first widely rumored last month, with people speculating that NBCUniversal planned on investing up to $250 million into the site to reach younger audiences that have steered away from the traditional media outlets and are going to the Internet for their news and entertainment.
“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, and we’re excited to partner with NBCUniversal to combine our respective strengths to build the future of news and entertainment,” said Jonah Peretti, BuzzFeed‘s Founder and CEO.
Comcast-owned NBCUniversal has sunk $200 million into BuzzFeed: http://t.co/nX6bjSCAZ0 pic.twitter.com/pDR65oAWkM
— Forbes (@Forbes) August 18, 2015
“BuzzFeed and NBCUniversal will be great strategic partners and we both have a lot to offer the other,” Kenneth Lerer, BuzzFeed’s Executive Chair, said.
Tuesday’s announcement comes just six days after NBCUniversal made a $200 million investment into Vox Media. Vox Media CEO Jim Bankoff said the deal with Vox will feature a digital advertising collaboration, the Wrap reports. They will also be working on video advertising and programming, and it is expected that Vox Media staff members will start appearing on CNBC and NBC.
NBCUniversal is making a $200-million investment in BuzzFeed http://t.co/vrOxAGyNpApic.twitter.com/k1Fh1KeXrU
— Los Angeles Times (@latimes) August 18, 2015
In a blog post, Jonah Peretti noted that his company was partnering with several other groups as well. He said they had signed an agreement with Yahoo! JAPAN to launch BuzzFeed Japan as a “joint venture based in Tokyo.” They have also established partnerships with Facebook’s Instant Articles, Snapchat’s Discover, and Apple’s forthcoming News app.
“All these deals were structured to assure BuzzFeed’s continued editorial and creative independence. Equally important, the investment from NBCU and our rapidly growing revenue assures our financial independence, allowing us to grow and invest without pressure to chase short-term revenue or rush an IPO,” he said. “Our independence and a long-term focus align us with our readers and viewers and help us deliver the best possible service for our audience.”
As the Inquisitr previously reported, Buzzfeed took the lead of the top media publishers last month. The information recorded comes from an analysis of the types of media and publishers being accessed on all social media platforms, and BuzzFeed managed to have three of their publishing sites make it into the top five.
[Photo by 360b / Shutterstock]
