NBCUniversal, a Comcast subsidiary, confirmed on Tuesday that it has invested $200 million in BuzzFeed only a week after investing the same amount with Vox Media.
The deal was widely expected, according to USA Today. When the company announced its equity deal with Vox Media, reports had emerged that it's also looking into the same kind of deal with BuzzFeed.
The company gained a substantial equity stake from the popular online publisher because of the deal. However, the equity amount was not disclosed by the company.
"They reach a massive, loyal audience and have proven to be among the most creative, popular and influential new media players," NBCUniversal CEO Steve Burke said.
"We are pleased to be making this investment and for our companies to partner and work together," Burke added, The Wrap noted.
So what's next for BuzzFeed following the deal?
It was reported that the companies would be exploring "strategic partnerships across both companies." That includes collaboration on TV contents and movies, Olympics and advertisement from corporate clients.
In a staff memo published on the site, BuzzFeed CEO Jonah Peretti stated, "The investment from NBCU and our rapidly growing revenue assures our financial independence, allowing us to grow and invest without pressure to chase short-term revenue or rush an IPO,"
In addition, BuzzFeed has signed an agreement with Yahoo! Japan to launch a joint venture based in Tokyo — BuzzFeed Japan.
Peretti said that partnering with Yahoo! Japan would allow the company to grow much faster compared with launching the project on their own.
The recent deal with NBCU rose Vox Media's value to roughly $1 billion, and BuzzFeed to about $1.5 billion, News Week reported.
BuzzFeed was launched in 2006, and Vox Media was launched in 2011. Both media companies were described as relatively new to traditional media standards.
NBCUniversal owns cable channels such as USA Network, Bravo Media, MSNBC and E! Entertainment.
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