Buzzfeed Made An Announcement Of Acquiring Their Media Rival Huffpost From Verizon Media
The two biggest digital media giants in the world are joining forces forming a stronger font recently. BuzzFeed announced on Thursday that it has decided upon acquiring HuffPost online news service. The two digital media giants will be unified establishing a fresher and stronger unit revitalizing the troubled sector.
With this deal, the ownership of HuffPost will be handed over to BuzzFeed from its parent firm Verizon Media. BuzzFeed will also be able to use content from other Verizon properties including Yahoo. They will also be syndicating each other’s content in their partnership.
Verizon Communication Inc. will be a minor shareholder in BuzzFeed as well with this deal. The two companies have decided upon a joint strategic partnership for their content and advertising.
The chief executive of BuzzFeed Jonah Peretti who also founded HuffPost 15 years ago, which was earlier called the Huffington Post with one of the founders Arianna Huffington, said that BuzzFeed is quite excited about their new partnership with Verizon Media and the ‘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.’
Peretti also said the memories of growing HuffPost into a huge media outlet in the early years are still vivid. BuzzFeed’s acquisition will open up great new possibilities for HuffPost in the future as its potentials are still continuing to grow in the global media landscape in the near future.
Digital media has been facing a tremendous amount of trouble in the current times. They have been trying to come up with strategies to counter the digital ad landscape domination created by Facebook and Google. Despite the early huge success of BuzzFeed and HuffPost, they were struggling in the troubled sector for a few times. The unification of the companies opens up new doors for a brighter future for both the media firms. The economic environment for both companies is supposed to improve with this deal.
In an interview, Peretti told BuzzFeed that because of the ‘brand and the audience’ of HuffPost, the deal was more attractive.
He explained in the interview that they do not want to change the fundamental pattern of the companies. ‘We want HuffPost to be more HuffPosty, and BuzzFeed to be more BuzzFeedy- there’s not much audience overlap.’
Verizon has established a powerful presence in the field by already acquiring brands like AOL, TechCrunch, and Yahoo.
Verizon Media’s chief executive Guru Gowrappan said that the company has developed a more evolving strategy in the past two years that allows them to concentrate more on the actual strengths of the company, which are ads, content, commerce, and subscriptions.
They hope to acquire more benefits with their partnership with BuzzFeed. He says, ‘the partnership with BuzzFeed complements our road map while also accelerating our transformation and growth.’
I am Darryl Broadhurst and i give investors an insight into the most recent news hitting the “Technology” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community.
