American media mogul Byron Allen's BuzzFeed posts 44% drop in third-quarter revenue

BuzzFeed Inc., the digital publisher controlled by American media mogul Byron Allen, said its third-quarter revenue fell 44% and its loss more than doubled, in the first full quarter since Allen took charge of the company.

Revenue dropped to $26 million in the three months to Sept. 30 from $46.3 million a year earlier, the New York-based company said in results filed with the U.S. Securities and Exchange Commission on Nov. 4. Its net loss widened to $18.7 million from $7.4 million. Adjusted earnings before interest, taxes, depreciation and amortization swung to a loss of $4.8 million from a profit of $0.8 million.

Every part of the business shrank. Advertising revenue fell 31% to $15.4 million, content revenue dropped 20% to $5.8 million, and commerce and other revenue, which includes the affiliate fees BuzzFeed earns when readers buy products it recommends, slid 71% to $4.8 million.

Allen's plan

"This was a transitional quarter," said Allen, who is BuzzFeed's chairman and chief executive officer. He said the restructuring announced in July cut the company's workforce and dedicated contractors by about 35%, and that he expects it to save about $30 million a year.

Allen said his strategy is "to bring compelling content to audiences wherever they are" and to "position BuzzFeed to be a premier global free streaming platform." The company did not give a full-year forecast, saying it was deferring its 2026 outlook while it integrates the Allen deal and the July restructuring.

BuzzFeed ended September with $8.8 million in cash and cash equivalents, compared with $8.5 million at the end of 2025. Its total debt fell to about $33.8 million from $58.4 million after it repaid $20 million of a term loan during the first nine months of the year. The company lists its ability to meet debt payments and loan covenants among the risks to its business.

The number of Class A shares outstanding rose to 89.8 million at the end of September from 36 million at the end of last year. The balance sheet also carries a $101.7 million stock subscription receivable, money still owed for shares the company has issued, which it records as a reduction in equity.

A $120 million bet

Allen agreed in May to buy a controlling 52% stake in BuzzFeed for $120 million, or $3 a share, paying $20 million in cash at closing and the rest through a five-year promissory note carrying 5% annual interest. Co-founder Jonah Peretti moved to the role of president of BuzzFeed AI.

The company, which owns HuffPost and the food brand Tasty, has struggled for years with falling digital advertising and social media traffic. Its revenue in the third quarter was less than half of what it earned in the same period two years earlier.

Allen, a former stand-up comedian, founded Entertainment Studios in 1993 and built it by producing and syndicating low-cost television shows. His Allen Media Group owns The Weather Channel, which he bought in 2018 for about $300 million, along with local TV stations and cable networks. He has become one of the most prominent Black media owners in the U.S. Between August and September he sold his entire 10.7% stake in pay-TV network Starz for almost $45 million, about six months after paying $25 million for it.