Media entrepreneur Byron Allen is set to become the new chief executive of BuzzFeed after agreeing to acquire a controlling stake in the company through a $120 million deal. The agreement gives Allen Family Digital about 52% ownership of BuzzFeed and places Allen in charge of the company founded by Jonah Peretti in 2006.
BuzzFeed disclosed that Allen Family Digital will purchase 40 million shares at $3 each. The transaction includes $20 million in cash and a $100 million promissory note due in five years with 5% annual interest. The company said the deal is expected to close later this month, The Wall Street Journal reported.
