An Entrepreneurial Journey

Jonah Peretti, founder and CEO of BuzzFeed, has spent nearly two decades reshaping the landscape of digital media. His tenure is marked by moments of significant transformation, as the once small startup evolved into a formidable multimedia organization. However, as BuzzFeed progresses, questions arise regarding whether Peretti’s innovative instincts are conducive to establishing long-term stability for the company.

The Drive for Constant Innovation

Peretti reflects on his extensive experience in the media sector, noting, “The nice thing about this field is you do something [different] all the time. It’s not been 20 years of one job. It’s been 20 years of running a startup, then managing a hyperscaling business, then figuring out how to get the company public, and now the explosion in generative AI.” This perpetual reinvention has been integral to BuzzFeed’s success, particularly in the company’s ability to generate viral content that resonates with audiences; a hallmark of its brand.

For instance, one popular video, which humorously examined the romantic qualities of Disney princes, has garnered approximately 77 million views over time.

Embracing AI and New Ventures

In its current phase, BuzzFeed is pivoting towards artificial intelligence, launching AI-driven quizzes and content. Notably, the company is also developing a new social platform named BF Island, aimed at harmonizing AI with creative expression. Peretti emphasizes the importance of sharing ideas early, stating, “The idea of talking about things you’re working on is that you make the product better.” This strategy not only engages internal teams but also invites external collaboration.

Balancing Experimentation with Strategy

The entrepreneurial ethos that fuels BuzzFeed’s projects has led to significant milestones, including the creation of iconic viral quizzes and listicles, as well as a shift to more serious journalism with the launch of BuzzFeed News. However, not every initiative has proven successful; notably, BuzzFeed News was closed in 2023, leading to discussions about the need for a more unified strategic vision.

After going public in 2021, BuzzFeed faced operational shifts, including the sale of the Complex Networks acquisition for about $108 million, alongside another asset from that deal, First We Feast, sold for a cash deal of $82.5 million.

Financial Landscape and Future Challenges

Despite initial optimism, BuzzFeed’s stock has seen a significant decline, falling from its initial public offering price of $10 to approximately $2.20 per share today. The ongoing tension lies in Peretti’s approach to continuous innovation, which some stakeholders might interpret as a lack of a cohesive long-term direction. Peretti acknowledges this balancing act: “I think the deeper next-level understanding is that just doing the same thing over and over again… is actually a more risky strategy than innovating.”

Looking Ahead

As BuzzFeed navigates the complexities of the media landscape, it must weigh the merits of its innovative strategies against the demand for stability. The media industry historically favors consistent approaches, but the rise of generative AI holds promise for reshaping content creation and audience engagement.

Peretti remains optimistic: “BuzzFeed has given us a lot of experience with new formats,” and the potential for collaboration with creative minds in this evolving space offers exciting possibilities. The forthcoming ventures, including BF Island, represent BuzzFeed’s attempt to harness emerging technologies while striving to meet the financial and audience challenges of today’s market.

For more insights from our interview with Peretti, tune into the latest episode of StrictlyVC Download, available every Tuesday.