Jonah Peretti’s career is characterized by continuous adaptation. As the founder and CEO of BuzzFeed, Peretti has played a significant role in the digital media sector for nearly two decades, navigating the transformation of the company from a small startup to a major multimedia entity.
As BuzzFeed evolves, there is a question about whether Peretti’s relentless pursuit of innovation has rendered him too entrepreneurial to guide the company toward lasting stability.
Peretti often reflects on the field’s dynamic nature, noting that his experience spans from managing a startup to overseeing a rapidly scaling business, transitioning to a public company, and exploring the potential of generative AI. He appreciates that there is always something new to keep his role engaging.
His capacity to innovate has been pivotal to BuzzFeed’s accomplishments. The company initially thrived in generating shareable content, exemplified by a video segment about why Disney princes would be unsuitable boyfriends, which amassed 77 million views.
Currently, BuzzFeed is concentrating on AI initiatives, including AI quizzes and AI-generated content. It is also dedicating resources to a developing product called BF Island, a social network designed to blend AI with content creation to foster playful creative expression. This was mentioned in a previous discussion with Axios.
Peretti frequently shares information about new projects with the media, even at early stages. He told TechCrunch that discussing these endeavors is beneficial because it improves the product development process and opens opportunities for collaboration. New computing platforms often lead to creativity, providing chances to build novel solutions.
His entrepreneurial spirit has driven BuzzFeed’s most notable projects. The company developed viral quizzes and listicles before transitioning to serious journalism with BuzzFeed News. However, not all ventures have succeeded. BuzzFeed News, despite early success, was closed in 2023, raising questions about whether a more consistent vision might have been more effective.
Shareholders might wonder similarly, after experiencing BuzzFeed’s fluctuations. The company went public in 2021 through a special purpose vehicle, acquiring Complex Networks for $300 million in cash and stock. BuzzFeed later sold this business for approximately $108 million. It also divested another Complex Networks asset, First We Feast, in an $82.5 million all-cash transaction. Peretti explained that these sales were due to the nature of the businesses, which were more focused on production and talent.
BuzzFeed’s stock, initially priced at $10, now trades at $2.20 per share.
This demonstrates a conflict: Peretti’s continuous innovation is noteworthy but may lead to a perception that the company’s strategy resembles a series of experiments rather than a cohesive long-term plan. Such experimentation also incurs costs. Peretti disclosed that BF Island represents a $10 million investment, with no anticipated revenue this year, while asserting that BuzzFeed’s core business remains profitable.
The debate persists on whether BuzzFeed would benefit from a consistent future vision, akin to The New York Times, versus pursuing new ideas continually.
While answers are elusive, the media industry traditionally values stability, yet Peretti recognizes the profound impact of generative AI on content creation and sharing. He also acknowledges the risks involved, noting BuzzFeed’s extensive experience with new formats and collaboration potential.
In his view, repeating the same approach poses greater risks than embracing innovation and experimentation. Peretti balances growth and financial challenges, understanding that exploring new methods can provide advantages in a competitive market.
Further insights from Peretti can be expected in an upcoming episode of “StrictlyVC Download,” available every Tuesday.
