Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

BuzzFeed CEO Jonah Peretti. Photo: Nicholas Hunt/Getty Images

BuzzFeed has agreed to buy progressive news website HuffPost from Verizon Media in an all-stock deal, the companies announced Thursday.

Why it matters: HuffPost was once one of the most-trafficked news websites on the internet, but an over-reliance on social media distribution and a lack of strategic vision stripped the site of relevance in recent years.

  • The company — which was co-founded as The Huffington Post by BuzzFeed founder and CEO Jonah Peretti, Arianna Huffington and media mogul Ken Lerer — was renamed HuffPost in 2017.
  • Its big, bold headlines and its sprawling network of contributors allowed it to scale across the internet quickly.
  • Verizon Media has been looking for a buyer for HuffPost for years.

Deal details: Verizon Media will invest in BuzzFeed, taking a minority stake in company. The deal is expected to close at the beginning of next year.

  • According to an internal memo sent from Peretti to staff, little will change in the short term on a day-to-day-basis. "Our business strategy is to make sure that the two newsrooms maintain their own identities to preserve the big and loyal audiences that each has built up," he wrote.
  • BuzzFeed News will remain a separate news organization, as will HuffPost. HuffPost will continue to operate its own website, social channels and app. It will also have its own editor-in-chief, which the company is still looking to hire.

What's in it for BuzzFeed? Scale for cheap.

  • BuzzFeed will add HuffPost to its network of big internet brands that perform well on social media and are good for selling commerce, like Tasty.
  • In a memo to employees about the deal obtained by Axios, Peretti said "HuffPost is one of the few digital content brands that is universally known, with significant scale, and a passionate, loyal audience that is different from ours."

What's in it for HuffPost? A lifeline.

  • Verizon has had to write down nearly half of its media investments that stem from pricey acquisitions of sites like AOL and Yahoo.
  • AOL bought HuffPost for $315 million in 2011. At the time, HuffPost's sale was considered one of the most successful venture capital exits in media.

What they're saying: The companies are billing the deal as a combination of synergies that will "unlock revenue for both companies through content syndication, new sales opportunities, commerce and [augmented reality]."

  • “Verizon Media’s strategy has evolved over the past two years to focus on our core strength — ads, commerce, content and subscriptions," said CEO Guru Gowrappan.
  • "With the addition of HuffPost, our media network will have more users, spending significantly more time with our content than any of our peers," said Peretti.

The big picture: Media consolidation has picked up speed over the past year, as the industry scrambles to survive the tough economic climate made worse by the coronavirus pandemic.

What's next: Verizon Media says HuffPost will still be a content syndication partner for its distribution brands, like Yahoo — and that BuzzFeed will be able to syndicate content across Verizon’s Media brands. Verizon Media, which has a strong ad sales infrastructure, will continue to do ad sales for HuffPost.

Note: Former HuffPost co-founder and chairman Ken Lerer, who also served as the chairman to BuzzFeed, is an investor in Axios.

Go deeper

Jan 27, 2021 - Economy & Business

Wanted: New media bosses, everywhere

Illustration: Sarah Grillo/Axios

The Washington Post, Los Angeles Times, Reuters, HuffPost and Wired are all looking for new editors. Soon, The New York Times will be too.

Why it matters: The new hires will reflect a new generation — one that's addicted to technology, demands accountability and expects diversity to be a priority.

The week the Trump show ended

Data: NewsWhip; Chart: Andrew Witherspoon/Axios

Donald Trump was eclipsed in media attention last week by President Biden for the first time since Trump took office, according to viewership data on the internet, on social media and on cable news.

Why it matters: After Trump crowded out nearly every other news figure and topic for five years, momentum of the new administration took hold last week and the former president retreated, partly by choice and partly by being forced off the big platforms.

At least 3 dead after Amtrak train derails in Montana

Photo: Jacob Cordeiro/Twitter

An Amtrak train derailed near Joplin, Montana, resulting in at least three deaths and multiple injuries to passengers and crew on Saturday, per a company statement.

The big picture: 141 passengers and 16 crew members were estimated to be traveling on the westbound Empire Builder train from Chicago to Seattle and Portland when eight cars derailed about 4p.m., Amtrak said early Sunday.