It might be Jonah Peretti's last chance to turn BuzzFeed around
Publishing timestamp: 2023-05-01 12:06:40
Summary
BuzzFeed CEO Jonah Peretti is hoping to increase the company's share value by changing its focus, but the digital media company's stock has fallen 95% since going public in December 2021. If the company trades below $1 for 30 consecutive business days, it risks being delisted. Peretti's plan is to boost shares back over $1 by persuading investors he's prepared to run a more profitable company, which led him to shut down BuzzFeed's Pulitzer-winning but money-losing newsroom last week and lay off 180 employees. BuzzFeed generates most of its sales from digital advertising and content revenue, which includes branded quizzes and sponsored videos. Peretti hopes incorporating more artificial intelligence into the company's content will both boost engagement and save costs. However, BuzzFeed's announcement in January that it would begin using AI to help generate quizzes gave BuzzFeed a brief surge in value, with shares jumping 120%, but for the most part, BuzzFeed shares have been all chute and no ladder.
Sentiment: NEGATIVE
Keywords: breaking news: business, business news, hippo holdings inc, technology, media, buzzfeed,
Source: https://www.cnbc.com/2023/04/30/buzzfeed-turnaround-jonah-peretti.html