Wednesday - Aug 23, 2017

Buzzfeed raises another $50 million to take their news service to the next step


Buzzfeed raises another $50 million to take their news service to the next step

BuzzFeed the New York City-based media and technology, entertainment website, has announced that they have succeeded in conscripting an additional $50 million investment from Andreessen Horowitz, one of the most dynamic venture capital firms, operating out of Silicon Valley, on the West Coast of America.

According to industry estimates this latest round of investment values Buzzfeed, who were founded in 2006, in the region of $850 million.

Originally founded as a viral lab by Jonah Peretti, BuzzFeed has set the standard for news gathering with around 150 million site visitors every month. Over the last two years, particularly since Ben Smith, formerly of Politico was brought in as Editor-in-Chief, the BuzzFeed website has expanded its coverage to cover topics ranging from politics and business to home maintenance and interior design.

As part of the funding package Chris Dixon, who serves as a general partner at Andreessen Horowitz, will be joining BuzzFeed’s board. On the announcement Dixon stated that Andreessen Horowitz still regards BuzzFeed as being technology focused enterprise who embrace all that is best in modern Internet culture, with all of their content being primarily optimized for mobile and social channels.

Despite their ever-growing web traffic, BuzzFeed admit to experiencing some of the challenges that more traditional media and online publications, with rates for traditional online advertising, having been on the decline over the last few years.

BuzzFeed has reportedly succeeded in countering activating this trend with the bulk of their revenue now coming from their BuzzFeed Creative division, a recently formed entity employing 75 staff who are dedicated to creating for brands, custom video and list-style advertising content that has reportedly driven BuzzFeed’s revenue for the first half of 2014 to 200% more than it was for the same period last year as the first half of 2013.

According to Andreessen Horowitz, BuzzFeed is looking forward to generating income running into the ”hundreds of millions” of dollars by the end of this year.

Industry analysts state that BuzzFeed desire to diversify media major factor in protecting them from being overly dependent on income derived from social media.

The company also recently established BuzzFeed Motion Pictures, headed by Ze Frank, a renowned web video pioneer, whose role it will be to produce new marketing orientated videos, ranging from six-second clips made specifically for social media to more traditional 22-minute shows. Initially, established BuzzFeed Motion Pictures will focus their efforts on on independent distribution, and plan to host their own video content on BuzzFeed.com, YouTube as well as or other digital platforms, with long-term plans to produce feature-length films or shows, even working in conjunction with traditional Hollywood studios.

Thanks to the capital injection, BuzzFeed are also planning to extend their presence on international markets, which already proven to be a major factor in the site’s new-user growth, with plans already in place to open offices in Japan, Germany, Mexico and India before the end of the year.

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