Allen will take over as CEO, replacing founder Jonah Peretti, who will move into a new role leading BuzzFeed AI.
The acquisition gives Allen a 52% controlling stake in the struggling digital publisher, which has faced mounting financial pressure as advertising revenue shifted toward platforms such as TikTok, YouTube and Instagram.
BuzzFeed recently reported a quarterly loss of more than $15m and warned earlier this year that there was “substantial doubt” about its ability to continue operating.
Allen, whose media empire includes Allen Media Group and The Weather Channel, says he plans to reposition BuzzFeed around free-streaming video, audio and user-generated content in an attempt to compete more directly with platforms like YouTube.
