Jonah Peretti’s career has been characterized by continuous reinvention. As the founder and CEO of BuzzFeed, Peretti has played a significant role in digital media for nearly two decades, guiding the company from a small startup to a prominent multimedia entity.
However, as BuzzFeed matures, a pressing question arises: Is Peretti’s constant pursuit of innovation hindering the company’s path to long-term stability?
Peretti reflects on his experiences, stating that the dynamic nature of the industry ensures constant change. Over the past 20 years, he has transitioned from running a startup to managing a rapidly expanding business, navigating the process of going public, and now addressing the surge in generative AI. This continuous evolution keeps his work engaging and novel.
Peretti’s ability to adapt has been crucial for BuzzFeed’s success. Historically, BuzzFeed stood out for creating shareable media content, exemplified by a video segment that humorously explored why Disney princes would be “terrible boyfriends,” amassing 77 million views.
Currently, BuzzFeed is concentrating on artificial intelligence, including AI-generated quizzes and content. The company is also investing in a new project, BF Island, a social network designed to combine AI with content creation, aiming to “spread joy and enable playful creative expression,” a concept Peretti shared with Axios recently.
Peretti frequently discusses the company’s future projects with the media, even during their developmental stages. He explained to TechCrunch that speaking about new endeavors not only improves the product but also invites collaboration from external parties.
This entrepreneurial spirit has driven several of BuzzFeed’s notable projects. The company initially gained fame with viral quizzes and listicles, later shifting to more serious journalism with BuzzFeed News. However, not all ventures have been successful. BuzzFeed News was shut down in 2023, raising questions about whether the company should have maintained a singular vision instead of exploring diverse paths.
BuzzFeed’s shareholders may have similar concerns after experiencing significant business shifts. BuzzFeed went public through a special purpose vehicle in 2021, acquiring Complex Networks for $300 million in cash and stock. Although BuzzFeed continues to trade publicly, it later sold Complex Networks for approximately $108 million. More recently, BuzzFeed sold First We Feast, part of the Complex deal, for $82.5 million in cash. Peretti explained that these assets were more focused on production and talent rather than technology.
BuzzFeed’s stock, initially priced at $10, currently trades at $2.20 per share.
This reflects the existing tension. While Peretti’s commitment to reinvention is noteworthy, it also suggests that the company’s strategy often appears to be a collection of experiments rather than a cohesive long-term plan. These experiments incur costs. BF Island, for instance, represents a $10 million investment without expected revenue this year. However, BuzzFeed’s core business remains profitable.
The question persists whether BuzzFeed would benefit from adopting a singular, consistent vision for the future, akin to The New York Times, rather than pursuing numerous new ideas.
Finding a definitive answer is challenging. The media industry traditionally values stability, but Peretti acknowledges the transformative impact of generative AI on content creation and distribution. Despite his enthusiasm for future possibilities, he remains aware of the associated risks.
Peretti asserts that BuzzFeed’s extensive experience with new formats has attracted creative collaboration. He believes that the real risk lies in repeating the same strategies without innovation, emphasizing the importance of an open-minded approach in a competitive market.
