NBCUniversal, BuzzFeed Enter Expanded Partnership; Calls for Additional $200M Investment (CMCSA)
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(Updated - November 21, 2016 1:36 PM EST)
BuzzFeed and NBCUniversal today announced that NBCUniversal made an additional $200M investment to expand the strategic partnership between the two companies and fund the growth of BuzzFeed’s industry leading news and entertainment network.
With this investment, NBCUniversal and BuzzFeed will extend their advertising sales relationship. BuzzFeed will collaborate with NBCUniversal on production and social distribution for NBCUniversal’s Content Studio, which delivers platform-specific, short-form digital video content to advertisers. NBCUniversal will also represent BuzzFeed’s inventory to advertisers. Additionally, the companies will work together to create new digital consumer experiences for NBCUniversal premium content.
The new investment will also allow BuzzFeed to build on the company’s lead in digital media. BuzzFeed will focus on further developing data science and technology, growing the massive Tasty food media network, and creating cross-platform advertising products. Additionally, BuzzFeed News will expand its award-winning journalism on all digital platforms and continue to grow its digital video operations in Los Angeles, New York, and around the world.
“Over the past year, BuzzFeed has proven to be a valuable partner across our business. From the Olympics to the record-breaking launch of Secret Life of Pets, BuzzFeed has helped us engage millennial audiences with our content and extend the reach of our clients’ campaigns to new platforms,” said Maggie Suniewick, President of NBCUniversal Digital Enterprises. “We are looking forward to using the power of our brands to collaborate in more innovative ways that drive value for both companies.”
NBCUniversal and BuzzFeed have already partnered on successful initiatives including the 2016 Rio Olympics on Snapchat, co-selling advertising deals across linear and digital, and content partnerships like Tasty on NBC News’ TODAY.
“NBCUniversal has been a tremendous partner this past year and we can’t wait to do more with them. Our collaboration has allowed us to focus on our respective strengths, learn from each other, and serve our combined audience better with compelling news, entertainment, and advertising offerings that neither company could do on our own,” said Jonah Peretti BuzzFeed CEO and Founder. “The investment allows us to remain a fully independent company but have access to and resources from the strongest and best media company there is.”
BuzzFeed reaches over 500 million people around the world on digital platforms and is leading a massive shift to digital that is transforming news, entertainment, and advertising. BuzzFeed reaches more people, on more digital platforms, in more markets than any other pure digital media company.
“Buzzfeed is really perfectly positioned to continue to lead the industry. With digital distribution fully built out, mobile content is where all the excitement is and this follow on commitment from NBCUniversal will allow us to continue to build out our footprint, invest in new products and continue to aggressively grow our revenue,” said Kenneth Lerer, BuzzFeed’s Executive Chairman.
LionTree Advisors acted as financial advisor and Fenwick & West LLP acted as legal advisor to BuzzFeed on the transaction. Davis Polk & Wardwell LLP acted as legal advisor to NBCUniversal on the transaction.
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