Buzzfeed is Dying

[admin]

BuzzFeed showed ESPN it’s not the only media company that can give employees the boot, laying off 8% of its U.S. workforce (mainly from its ad sales unit). Yes, there arestories BuzzFeed doesn’t want trending. 

But CEO Jonah Peretti suggests there’s more to the madness than meets the eye. BuzzFeed is merely diversifying from its tried-and-true method of native advertising, and focusing on revenue drivers like e-commerce and video production (BuzzFeed Studios, it’s a real thing).

As for the shift, it’s no secret: Facebook and Google have cannibalized 63% of the market for U.S. digital ad spend. So much so that BuzzFeed will miss revenue expectations of $350 million this year by up to 20% (not to mention, it’s delaying a planned 2018 IPO). 

Still, with a “more diverse and balanced” business, Peretti is hoping to keep that $1.7 billion valuation. Until then? He’s in a corner office somewhere, watching Tasty videos till it all blows over.