BuzzFeed buys HuffPost

BuzzFeed has struck a deal with Verizon to acquire HuffPost in an all-stock deal.

Benjamin Mullin and Keach Hagey from the Wall Street Journal reported:

BuzzFeed Inc. has agreed to acquire Verizon Media’s HuffPost in a stock deal, the companies said Thursday, uniting two of the larger players in digital media as companies across the sector search for ways to jump-start growth.

The acquisition is part of a larger deal between BuzzFeed and Verizon Media, a unit of Verizon Communications Inc. VZ -0.18% Under the pact, the companies will syndicate content on each other’s platforms and look to jointly explore advertising opportunities. Verizon Media will get a minority stake in BuzzFeed as a result of the tie-up, the companies said.

The New York TImes’ Edmund Lee and Tiffany Hsu wrote:

As part of the arrangement, Verizon Media will become a minority shareholder in BuzzFeed, the companies said, but it will not have a seat on BuzzFeed’s board.

“We’re excited about our partnership with Verizon Media, and mutual benefits that will come from syndicating content across each other’s properties, collaborating on innovative ad products and the future of commerce, and tapping into the strength and creativity of Verizon Media Immersive,” Mr. Peretti said in a statement.

Reuters’ Helen Coster noted:

Verizon Media has no plans to sell other properties at this time, said CEO Guru Gowrappan in an interview.

In the past few years, HuffPost has struggled with declining advertising revenue and adopted a series of cost-cutting measures, including layoffs. The outlet has tried to pivot to a subscription model since last year, with limited success, according to a person familiar with its operations.