BuzzFeed has released 15% of its staff – about 200 employees – on Friday. His next step could be merging with Group Nine, another great digital publisher.
Speculation about the relationship between the two companies has been appearing in the media industry for months, and sources familiar with both companies say they both really were discussing a merger. The two companies are not close to a finalized deal and eventually they can find different partners. If there is a merger, sources say, it will not happen immediately.
BuzzFeed Representative declined to comment; I asked Nine for a comment.
There is some logic, as BuzzFeed and Group Nine specialize in generating relatively low-volume, high-volume videos designed to travel online using platforms such as Facebook and Google. Last Autumn, BuzzFeed Executive Director Jonathan Perety publicly presented the idea of uniting large digital publishers to get better terms from Facebook and other distributors. Lerer, who, together with Peretti, co-founded HuffPost, is the BuzzFeed board chairman; his son, Ben Lerer, runs Nine. The Nine Group was set up in 201
Each deal will require a set of supporters of companies to reach an assessment agreement. Most intriguing is that Discovery, which owns the largest share in Group Nine, has to be in sync with competing television giant Comcast *, which has invested $ 400 million in BuzzFeed and is the publisher's biggest supporter. estimates its 42% in the Nine group at $ 212 million, suggesting a $ 500 million mark-up for the entire company. In 2016 BuzzFeed raised $ 200 million from NBC Universal worth $ 1.7 billion. It is likely that this number will fall in today's market, after several years when other digital publishers have been folded, sold at fire sales, or have noticed their diminished values . which had to thrive in the social media world, especially with the help of Facebook. But as Facebook spends several years courting media companies, it is now clear that Facebook (along with Google) will continue to dominate the internet advertising market and will not share that wealth with publishers. (His new step to the publishers: We will help you sell subscriptions which is a business we are not in.)
In response, Peretti is trying to find new sources of revenue, and now it cuts costs.
* Comcast is an investor in Vox Media who owns this site.