NBCU confirms $200m BuzzFeed stake

NBCUniversal (NBCU) has confirmed a US$200m investment in BuzzFeed in a deal that will propel the online publisher’s reach in TV and film.

The move comes after NBCU last week paid the same amount for a stake in another digital publishing operation, Vox Media, whose Re/code site earlier this month revealed the deals were imminent.

“BuzzFeed has built an exceptional global company that harmonises technology, data and superior editorial abilities to create and share content in innovative ways,” said NBCU CEO Steve Burke.

“It reaches a massive, loyal audience and has proven to be among the most creative, popular and influential new media players.”

BuzzFeed founder and CEO Jonah Peretti said the alliance would allow the company, which has already set up its own production studio under internet video pioneer Ze Frank, to further extend its presence in TV and film.

“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, and we’re excited to partner with NBCU to combine our respective strengths to build the future of news and entertainment,” he said.

Peretti noted that the NBCU investment would also allow BuzzFeed to retain its editorial independence and enable it to grow “without pressure to chase short-term revenue or rush an IPO.”

The online publisher’s exec chairman, Kenneth Lerer, added that the two parties would collaborate on “television content, movies, the Olympics and joint partnerships with ad agencies and brands.”

BuzzFeed reaches more than 200 million unique visitors per month and claims 1.5 billion monthly video views. NBCU’s financial input values the business at some US$1.5bn.

Alongside the investment announcement, BuzzFeed also revealed plans to launch in Japan via a deal with Yahoo! plus partnerships with digital distribution tools including Facebook’s Instant Articles, Snapchat’s Discover and Apple’s upcoming News app.