👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

BuzzFeed surges on content deal with Meta

Published 2023-01-26, 07:52 a/m
© Reuters.
META
-
BZFD
-

By Michael Elkins

Shares of BuzzFeed Inc (NASDAQ:BZFD) are up 31.51% in premarket trading on Thursday after it was announced that Facebook parent company, Meta Platforms (NASDAQ:META), announced that the social media company will be paying BuzzFeed millions of dollars as part of an effort to bring more creators to the social-media giant’s platforms.

According to The Wall Street Journal and people familiar with the situation, as part of a deal reached last year that is valued at close to $10 million, BuzzFeed agreed to help generate creator content for Meta’s platforms and train creators to grow their presence online. It couldn’t be learned if Meta is paying other publishers to generate creator content.

In 2016, Meta agreed to pay $50 million to a number of publishers, including BuzzFeed, to create live video content for the platform. The social-media giant eventually discontinued the program as its video approach changed.

However, recent years have seen creators flock to TikTok. According to research firm eMarketer, TikTok’s global user base grew 18% last year, while Meta’s Facebook plateaued, and its Instagram platform grew 2.75%.

Last year Meta announced it would stop paying news publishers to feature their content in its News tab and would reallocate resources to growing a creator business. The company launched Instagram Reels in 2020, in a push to compete with TikTok.

BuzzFeed, which went public in late 2021, has lost money in recent quarters, and its stock has recently traded around $1. In its most recent earnings report, BuzzFeed attributed the declining time users spent on its sites, in part, to declining traffic from Facebook users. Meta, in its latest earnings report, said nearly two billion people used Facebook daily.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.