A week after buying a $200 million stake in digital media producer Vox Media, NBCUniversal has again invested $200 million in Buzzfeed, another online media company, as the entertainment conglomerate expands online.
The Wall Street Journal said the investment puts Buzzfeed at $1.5 billion. It added that it was consistent with NBCUniversal CEO Steve Burke's directive for the company to go where eyeballs are going. The report added that the recent deals allows NBCUniversal to have access to younger audiences who are favouring new media outlets like Vox Media and Buzzfeed for their content that include news, lists and other advertiser-sponsored materials.
The New York Times noted the investments are just the latest of the recent moves by traditional media companies to form partnerships with fast-growing digital media players favoured by younger audiences.
Jonah Peretti, BuzzFeed's founder and chief executive, said in a statement quoted by the New York Times that his outfit is excited to partner with NBCUniversal and combine their strengths to build the future of news and entertainment.
"It's a fascinating time for the media industry; social, mobile, digital, and broadcast platforms are converging to create new opportunities to connect with global audiences," he said.
The Wall Street Journal noted that media observers had been expecting a consolidation among TV channel owners from increased competition from pay-TV. Instead, players are favouring partnering with digital media companies to boost growth.
In addition, the report stated that the investment allows Buzzfeed to take its time to grow and invest in the business and not be rushed into an initial public offering. It added that the company booked $100 million in revenues last year citing an internal memo.
Peretti also told the Wall Street Journal that the partnership allows for cross promotion of each company in their respective outlets, and opens the possibility of Buzzfeed entering film and television production.
The paper added that on Monday BuzzFeed signed a joint-venture deal with Yahoo Japan Corp. for a Japanese-language version of the site. It noted that Buzzfeed gets 45% of its traffic overseas.
