Tiago Bianchi
Research expert covering internet & gaming in Latin America and Spain
BuzzFeed Inc. - Statistics & Facts
Once an internet powerhouse built on the success of several ventures, BuzzFeed is now struggling to survive. Launched in 2006, the website gained enormous popularity by tailoring viral content on entertainment and pop culture, capitalizing on the interaction between online news media and social platforms. Recognized for its quizzes and "listicles," it established its BuzzFeed News division in 2011 and launched the food-focused video series Tasty in 2016, achieving significant milestones throughout the decade. Despite acquiring further enterprises, BuzzFeed was caught in the downward vortex of the online news media industry, struggling to hold its sinking market valuation and redefine its once industry-leading content in an uncertain and murky digital landscape.
Despite being a Pulitzer Prize finalist in 2016 and winner in 2021, the BuzzFeed News division was shut down in early 2023, as the company focused its editorial efforts on the recently acquired HuffPost. In early 2024, further layoffs were announced across all divisions, while BuzzFeed re-sold Complex, despite retaining some of its more successful franchises. Over the last two years, traffic to BuzzFeed’s main domain fell from over 60 million worldwide monthly visits to around 44 million. While its earnings received a boost from organizational restructuring and traffic to other divisions stabilized, BuzzFeed’s main segments, namely advertising and content, continued to see its revenues shrink.
While its finances remain shaky, the future of BuzzFeed's core content format is also uncertain. A recent minority stake acquisition by former Republican presidential candidate Vivek Ramaswamy to “shift its strategy” slightly increased the company share value but caused a stir, considering its main portal and HuffPost had historically been more liberal to left-leaning. Overall, BuzzFeed’s scuffle to retain the workforce and the enterprises that composed its once-popular catalog underscores the broader struggles facing the digital news media industry today.
Fracturing business in a declining environment
Throughout the 2010s, the synergy that built BuzzFeed's online reach turned into direct competition. As social networks started favoring video content while acting as publishers instead of simply a medium for news distribution, visits from social platforms to news websites declined, and the online news industry saw its overall traffic sink. The change in tides hit BuzzFeed harshly, and the company launched cost-cutting efforts while still aiming to go public. After merging with a special-purpose acquisition company (SPAC) and acquiring youth culture media company Complex Networks, Buzzfeed became the first publicly traded pure-play digital media company. However, its performance on the stock market remained far from smooth.Despite being a Pulitzer Prize finalist in 2016 and winner in 2021, the BuzzFeed News division was shut down in early 2023, as the company focused its editorial efforts on the recently acquired HuffPost. In early 2024, further layoffs were announced across all divisions, while BuzzFeed re-sold Complex, despite retaining some of its more successful franchises. Over the last two years, traffic to BuzzFeed’s main domain fell from over 60 million worldwide monthly visits to around 44 million. While its earnings received a boost from organizational restructuring and traffic to other divisions stabilized, BuzzFeed’s main segments, namely advertising and content, continued to see its revenues shrink.
AI and the search for a new buzz
Following the overarching trend towards artificial intelligence in digital industries, BuzzFeed began incorporating AI-generated online content for its personalized infinity quizzes and online chatbot games at the start of 2023. While these efforts did attract its already pre-existing younger audiences and brought modest advertising growth, the bet initially not impress investors. By early 2024, the company barely brought its valuations to over a dollar per share, avoiding a delisting notice by Nasdaq but still being surrounded by debt.While its finances remain shaky, the future of BuzzFeed's core content format is also uncertain. A recent minority stake acquisition by former Republican presidential candidate Vivek Ramaswamy to “shift its strategy” slightly increased the company share value but caused a stir, considering its main portal and HuffPost had historically been more liberal to left-leaning. Overall, BuzzFeed’s scuffle to retain the workforce and the enterprises that composed its once-popular catalog underscores the broader struggles facing the digital news media industry today.
