Comcast (CMCSA) media subsidiary NBCUniversal is showing its confidence in internet media company BuzzFeed, agreeing to invest an additional $200 million and extending the companies' strategic partnership.
The new investment will expand the advertising and sales relationship between the two New York companies, NBCUniversal said on Monday, with BuzzFeed helping NBCUniversal produce and distribute content from the latter's Content Studio. For its part, NBCUniversal will present BuzzFeed content to advertisers.
Buzzfeed, which reaches more than 500 million people across the world, will be able to boost its journalistic efforts as well, growing across all platforms and increasing its digital video operations, the statement said. The new funding from NBCUniversal values BuzzFeed at about $1.5 billion, according to Business Insider.
The funding comes amid a time of major change at once-darling BuzzFeed as the company shifts its focus toward video. In August, the company reorganized into two new departments, BuzzFeed News and BuzzFeed Entertainment Group.
CEO Jonah Peretti told employees that the change would help the company "take full advantage of many formats and technologies," according to a company memo cited by Reuters. Peretti added that video staff would be integrated into every department, because "having a single video department in 2016 makes about as much sense as having a mobile department."
The New York Times reported in September that video makes up about 50% of BuzzFeed's total revenue. In the next two years, video will dominate about 75% of the company's advertising sales.