NEW YORK (The Deal) -- BuzzFeed founder and CEO Jonah Peretti said that a $200 million investment by NBCUniversal announced by the companies Tuesday would help the experimental social media lab continue its development in global news and entertainment, according to a statement by BuzzFeed.
Collaboration between Buzzfeed and the Comcast (CMCSA - Get Report) division would range from movies to the Olympics and global advertising projects, the companies said in their press releases about the deal.
Shares of Comcast dropped 8 cents, or 0.1%, to $60.33 in Tuesday morning trading. Like other cable television groups, the stock has suffered in recent weeks amid investor concerns about the future of traditional media models. Comcast is down 6.5% since its July 22 close of $64.50.
NBCUniversal hopes to gain from the techniques that help Buzzfeed attract 200 million monthly unique visitors, who watch 1.5 billion videos of cats, dating profiles and other topics on the site each month. Other Buzzfeed investors include Andreessen Horowitz, RRE Ventures, Hearst Ventures, SoftBank (SFTBF), Lerer Ventures and Lazerow Ventures.
Pay-TV companies and network operators have been investing more heavily in technology that can either distribute or monetize video content over the Internet, rather than through cable or satellite systems.
While AT&T (T - Get Report) purchased traditional pay-television company DirecTV this year for $67 billion, including debt, it also made online investments. The company funds a venture with Chernin Group, dubbed Otter Media, that has invested in online video company Fullscreen.
BuzzFeed president Greg Coleman touted in a blog post that 45% of Buzzfeed's traffic comes from outside the U.S.
The New York digital media group will own a majority stake in the pact with Yahoo! Japan, and will control the board. Buzzfeed will contribute its brand, and guide the venture on technology and editorial strategy.
Yahoo! Japan will promote the JV's web properties and will provide guidance on Japanese culture, among other tasks.
Coleman and Buzzfeed's vice president of international business, Anne Hogarty, are leading a search for a new CEO.