NBCUniversal is reportedly going to invest $250 million to Buzzfeed. That deal will value the digital publishing at $1.5 billion.
Buzzfeed's value is currently at $850 million, following the $50 million it raised last summer from Andreessen Horowitz, a venture capital firm, Fortune has learned.
NBCUniversal decided to invest in Buzzfeed because it is part of the strategy of its CEO, Steve Burke, "to bet on digital outlets which can tap into millennial audiences, which is turning out of NBCU's TV networks and most others," Re/code reported.
The report also stated that the idea was NBCU could get a "crash course" on digital content and distribution of its new investments, vice versa — those companies may also want to share out some of NBCU's content.
Meanwhile, Jonah Peretti, CEO of Buzzfeed, said that he intended to find viewers for all of the contents outside Buzzfeed.com, but added that his focus on digital media may end up creating traditional media as well.
If this is the case, the company may see a strategic value in linking with NBCU, which owns several cable channels, broadcast network and a film studio. This could be a win-win situation for both companies.
The same company is also reportedly negotiating with Vox Media, which owns Re/code. If the deal with Vox — which raised money at a valuation of $380 million - closes, it will raise its value to $850 million.
NBCUniversal, Buzzfeed and Vox Media didn't give out any comments.
NBCUniversal is the film and television unit of Comcast. This isn't the first time that a traditional media operator invests hundreds of million in digital media, according to The Week.
Since 2013, Venture Capital has invested in Vox Media, Buzzfeed and other online media site.
The cable programmer A&E, which is owned by Disney and Hearst, placed a $250 million investment in Vice Media in 2014, a deal that valued the company at $2.5 billion.