BuzzFeed, Inc. (NASDAQ: BZFD) completed a transaction in which Allen Family Digital, LLC acquired approximately 51% of the company's outstanding shares for $120 million, according to a company statement.

Under the agreement, Allen Family Digital purchased 40 million shares at $3.00 per share. The transaction was funded with $20 million in cash at closing and a $100 million promissory note due in five years with 5% annual interest. BuzzFeed used $12.5 million of the cash proceeds to reduce existing debt.

Byron Allen assumed the role of Chairman and Chief Executive Officer, while Jonah Peretti transitioned to President of BuzzFeed AI. Peretti co-founded BuzzFeed in 2006 and served as CEO since the company's founding.

"Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content," Allen stated. "As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premier free-streaming video service."

Allen is the founder, chairman and CEO of Allen Media Group, which he established in 1993. The company owns 13 broadcast television stations, ten 24-hour HD television networks, and digital streaming platforms including Local Now and The Weather Channel Streaming App.

BuzzFeed plans to leverage Allen's media portfolio, which includes 650 FAST channels, approximately 400 local broadcast affiliates, and 30,000 movies, TV shows and documentaries. The company stated it will focus on AI-powered content creation and free-streaming video services.