BuzzFeed has agreed to acquire Verizon Media-owned HuffPost in a stock deal that will merge the two digital media majors and unlock revenue for both of them. The acquisition is part of a partnership between the two companies that also includes an investment that will make Verizon Media a minority shareholder in BuzzFeed.
As part of the agreement, Verizon Media and BuzzFeed have agreed to syndicate content across each other's platforms.They will create an innovation group to explore monetisation opportunities and leverage emerging ad formats, including extended reality (XR) and AR applications. Both media platforms will benefit from each others' assets in this regard.
Jonah Peretti, founder and CEO of BuzzFeed and one of the co-founders of the original Huffington Post, will run the merged entity. "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," said Peretti.
"I have vivid memories of growing HuffPost into a major news outlet in its early years, but BuzzFeed is making this acquisition because we believe in the future of HuffPost and the potential it has to continue to define the media landscape for years to come. With the addition of HuffPost, our media network will have more users, spending significantly more time with our content than any of our peers," he added.
Under the partnership, BuzzFeed can leverage Verizon Media Immersive, the largest online XR platform for advertising and content, Verizon said. Additionally, BuzzFeed will also be able to tap into Verizon Media's ad platform, which provides access to powerful, qualified data sets, while reaching consumers across all channels, including mobile, desktop, video, native, addressable TV, Connected TV (CTV), Digital Out of Home (DOOH), and audio, it added.
Meanwhile, HuffPost will continue to contribute to Verizon Media's portfolio as an official publishing partner, joining trusted premium content partners such as The New York Times, USA Today, Associated Press, and Reuters. HuffPost content will be amplified via Yahoo channels and products, boosting traffic and monetisation.
BuzzFeed will be able to syndicate content across Verizon's Media brands, including Yahoo. Additionally, Verizon Media will continue to manage sales for HuffPost's ad inventory.