Buzzfeed founder hints at media mega-merger as the publisher launches new membership scheme
Buzzfeed’s chief executive has said he would consider a merger with other media organisations as the publisher launches a shake-up of its business model.
Jonah Peretti, who co-founded the website in 2006, said on Monday a series of mergers between online media companies could be the answer to the current challenges faced by news organisations.
Peretti told the New York Times a mega-merger would put publishers in a stronger position to negotiate advertising revenue from Facebook and Google.
“If Buzzfeed and five of the other biggest companies were combined into a bigger digital media company, you would probably be able to get paid more money,” he said.
Peretti did not name the companies he has in mind for a merger, but referred to the “interesting work” being done at Vice, Vox Media and Group Nine.
“Having some bigger companies actually care about the quality of the content feels like something that’s very valuable,” he added.
The chief executive’s comments come as the news and viral content website explores new revenue opportunities and begins a shake-up of its business model.
Buzzfeed yesterday rolled out a new membership plan after trialling a voluntary payment scheme in August. The company said it received positive feedback from the trial, with an average donation of more than $20 (£15).
The new membership scheme offers readers the chance to support the website’s journalism, receive exclusive emails about scoops and gain behind-the-scenes access to its reporting for a subscription of $5 a month. US readers also have the option of paying a lump sum of $100 a year.
On its website the publisher says the scheme is “part of an effort to explore a deeper relationship with our most active supporters”.
Buzzfeed said it has no intentions to put up a paywall.