BuzzFeed buys HuffPost from Verizon and signs an alliance with the telecom company
BuzzFeed and Verizon will syndicate content between their different platforms
The viral content portal BuzzFeed has reached a collaboration agreement with Verizon Media , the media division of the telecom Verizon, which contemplates the acquisition of HuffPost , both companies announced this Thursday in a statement.
The agreement also includes a content syndication and strategic partnership, as well as Verizon Media’s acquisition of a minority stake in BuzzFeed . The companies have not disclosed the economic terms of the agreement, although the newspaper ‘The Wall Street Journal’ has affirmed that the investment of Verizon is in cash.
The acquisition marks the merger of two outlets founded by Jonah Peretti , CEO of BuzzFeed. Peretti was one of the co-founders of HuffPost, although he left the company in 2011 after being acquired by AOL. After that, he devoted himself full time to BuzzFeed.
The new digital media sector in the United States has been going through a consolidation stage for almost two years . In recent months, Vice and BuzzFeed have announced layoffs, including the total closure of their editions in Spain , with the aim of achieving profitability. In 2019, Vice bought Refinery29, while Vox Media acquired New York Media and Group Nine acquired PopSugar.
“I have vivid memories of growing HuffPost into a large medium in its early years, but BuzzFeed made this acquisition because we believe that the future of HuffPost and its potential define the media landscape for years to come . With the sum of the HuffPost, our media network will have more users, spending more time with our content than our rivals, “said Peretti.
In accordance with the collaboration between the two firms, BuzzFeed and Verizon will syndicate content between their different platforms and create an “innovation group” to explore innovation opportunities. They will also invest in new advertising formats, such as augmented reality.
“Verizon Media’s strategy has evolved over the last two years to focus on our key strengths: ads, commerce, content and subscriptions, ” added Verizon CEO Guru Gowrappan.
BuzzFeed will take advantage of Verizon’s advertising platform to access qualitative consumer and user data. In addition, despite the acquisition, HuffPost will continue to appear as a partner of Verizon, which will also continue to manage its marketing, sales and advertising department.
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