BuzzFeed on Thursday bought news website HuffPost from Verizon Communications Inc VZ.N in the latest sign of consolidation in the online media world.
Reuters reports the deal brings two once-hot digital properties - viewed as the future of news media but which have suffered from competition for ad dollars from Alphabet's GOOGL.O Google and Facebook FB.O - under the control of one of HuffPost's co-founders.
Verizon, which also owns Yahoo and TechCrunch, said it will invest in the new combined company and take a minority stake.
The companies will syndicate content across each other’s platforms, explore monetization opportunities and leverage ad formats, the companies said in a statement.
Terms of the deal were not disclosed.
In an interview, BuzzFeed Chief Executive Officer Jonah Peretti, said he was attracted to the property’s more affluent and age-diverse audience which “enhanced the size and scale of our media network.”
In the past few years, HuffPost has struggled with declining advertising revenue and adopted a series of cost-cutting measures, including layoffs. The outlet has tried to pivot to a subscription model since last year, with limited success, according to a person familiar with its operations.
Independent digital media outlets have consolidated to compete for ad dollars against big rivals. Vox Media last year acquired New York Media - the publisher of a print magazine and several online properties - and Vice Media bought Refinery29, an online publication geared to women.