Byron Allen Plans to Make BuzzFeed a YouTube Rival

Media mogul Byron Allen has acquired a controlling stake in BuzzFeed and intends to reposition the digital media company as a competitor to YouTube.

Allen, founder of Allen Media Group and now also CEO and chairman of BuzzFeed, sees significant opportunities in the digital media landscape. His strategy involves acquiring and revitalizing underperforming assets.

Allen highlighted the immense potential of BuzzFeed's brands, including HuffPost and particularly Tasty, which boasts over 174 million social media followers. Despite BuzzFeed's financial struggles, Allen believes in its value. "BuzzFeed is phenomenal," Allen stated. "We made a deal quickly because we believe in speed and decisive action." He is confident that BuzzFeed can challenge YouTube's dominance.

He criticized the low advertising revenue from traditional text-based online content, citing a CPM of only about $1.25. Allen is shifting the company's focus heavily towards video content, arguing that "advertisers are not supporting it."

Allen has previously pursued legal action to compel companies to allocate more advertising budgets to Black-owned media. He stresses the importance of economic inclusion and the need for minority groups to own and control their media platforms.