BuzzFeed pays Facebook millions of dollars to promote its clients' ads
The BuzzFeed media empire, reported to be raising $250 million from NBCUniversal at a $1.5 billion valuation, is profitable and growing. From 2012 to 2013, BuzzFeed's revenue tripled, and hit $46 million in the first half of 2014.It's also doubling its investment in editorial content: In 2013, BuzzFeed spent almost $12 million on editorial. In the first half of 2014 alone, it spent $10.5 million.
BuzzFeed declined to comment on this story.A big part of BuzzFeed's business model revolves around using Facebook and other social media advertising to drive readers towards branded, "native" content - you know, those BuzzFeed posts that look like normal stories, but are actually paid advertising.
Other highlights from those financials include the fact that BuzzFeed paid $1,000 in cash and 99,089 shares of stock valued at $.80 for Ze Frank Games, and that a publisher (presumed to be Google, by way of YouTube) paid BuzzFeed $3.5 million for original video content.
More recently, BuzzFeed raised a $50 million Series E round last summer, led by Andreessen Horowitz's Chris Dixon. The Series E capital infusion valued BuzzFeed at $850 million at the time.You can read the full BuzzFeed financial leaks here.
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