Meta Splurges On BuzzFeed To Tap Budding Content Creator Market

Anusuya Lahiri
1 min read
0
In this article:

  • Facebook parent Meta Platforms Inc (NASDAQ: META) paid BuzzFeed, Inc (NASDAQ: BZFD) millions of dollars to lure more creators to the social-media giant’s platforms.

  • As part of a deal reached last year worth $10 million, BuzzFeed agreed to help generate creator content for Meta’s platforms and train creators to grow their presence online, the Wall Street Journal reports.

  • BuzzFeed helped creators understand what makes content widely popular.

  • Also Read: Facebook Forgoes Another Ambitious Project To Focus Better On TikTok Competition

  • BuzzFeed essentially tapped content that went viral on Facebook, and the social-media giant regularly came to the publisher to help tap into trends in internet culture.

  • Creators in recent years have flocked to ByteDance Ltd-owned TikTok, a video-sharing app popular with younger audiences.

  • In 2022, Meta shared plans to stop paying news publishers to feature their content in its News tab and reallocate resources to growing a creator business. Meta launched Instagram Reels in 2020 to compete with TikTok.

  • In 2016, Meta agreed to pay $50 million to several publishers, including BuzzFeed, to create live video content for the platform.

  • Price Action: BZFD shares traded higher by 30.5% at $1.24 in the premarket on the last check Thursday.

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article originally appeared on Benzinga.com

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement

Recommended Stories