BuzzFeed investors have pushed CEO Jonah Peretti to shut down entire newsroom, sources say

[Yorkie Mom]

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BuzzFeed investors have pushed CEO Jonah Peretti to shut down entire newsroom, sources say

*Several large shareholders have urged BuzzFeed CEO Jonah Peretti to shut down the company’s news organization.

*BuzzFeed News has won awards, including a Pulitzer Prize, but is now shrinking through voluntary buyouts.

*BuzzFeed News has about 100 employees and loses roughly $10 million a year, according to people familiar with the matter.

BuzzFeed is shrinking its money-losing news organization, the company announced Tuesday, amid what people familiar with the matter describe as broader investor concern that the division is weighing down the company.

Several large shareholders have urged BuzzFeed CEO Jonah Peretti to shut down the entire news operation, said the people, who asked not to be named because the discussions were private. BuzzFeed declined to comment.

BuzzFeed News, which is part of its content division, has about 100 employees and loses roughly $10 million a year, two of the people said. The company, which also has advertising and commerce divisions, said Tuesday its full-year content revenue grew 9% in 2021 to $130 million.

One shareholder told CNBC shutting down the newsroom could add up to $300 million of market capitalization to the struggling stock. The digital media company went public via special purpose acquisition vehicle in December. Shares immediately fell nearly 40% in its first week of trading and haven’t recovered.

More: https://www.cnbc.com/2022/03/22/buzzfeed-investors-have-pushed-ceo-jonah-peretti-to-shut-down-newsroom.html?utm_content=Shep&utm_medium=Social&utm_source=Twitter#Echobox=1647969140

[kimbutgar]

1. One of the reasons I hate Wall Street

My early working career was working in stockbrokerage/ investment banking firms. In the 90’s I got lucky and made enough money to put a down payment on my house. I don’t miss the people or the money. When I finally ended the industry in 2013 I never looked back. It’s all about the bottom line and never giving back. Buzzfeed had some good reporting which I will miss.

[crickets]

2. Not good.

BuzzFeed does a excellent job - given all of the dreck out there, it would be a blow to lose a sane source of online news. Notice the cuts would involve hard news and science, leaving only the celebrity fluff behind. *gag*

[Carlitos Brigante]

3. K&R! nt