Byron Allen Targets Starz Acquisition After $20M BuzzFeed Deal
Byron Allen's Allen Media Group has acquired a majority stake in BuzzFeed for $20 million cash and $100 million deferred, aiming to bolster its AVOD offerings with BuzzFeed and HuffPost. Concurrently, Allen purchased an 11% stake in Starz for $25 million, intending to gain control and establish a dual AVOD-SVOD streaming platform strategy. This move positions Allen Media Group to expand its footprint in both advertising and subscription video-on-demand markets.
Key Takeaways
- Allen Media Group paid $20 million cash and $100 million deferred for a majority stake in BuzzFeed.
- The BuzzFeed acquisition adds HuffPost and BuzzFeed content to Allen Media's Local Now free streaming app.
- Byron Allen acquired an 11% stake in Starz for $25 million from Steve Mnuchin.
- Allen intends to control Starz to pair with his AVOD assets, aiming for an SVOD-AVOD dual platform.
- Starz implemented a 'poison pill' defense following Allen's stake acquisition.
Why It Matters
Byron Allen's strategic acquisitions of BuzzFeed and a significant stake in Starz signal a calculated move to build a vertically integrated media empire spanning both AVOD and SVOD. Integrating BuzzFeed and HuffPost content into Local Now aims to bolster Allen's ad-supported streaming presence while a potential Starz takeover secures a premium subscription offering. The "poison pill" defense by Starz indicates potential resistance, suggesting a protracted battle for control. The industry should watch for further consolidation attempts by Allen and the defensive maneuvers from companies targeted for acquisition, particularly how these actions reshape the competitive landscape for mid-sized streaming services.
Additional Context
Byron Allen's pursuit of Starz and the BuzzFeed acquisition underscore a consistent strategy for asset accumulation. The Starz stake purchase, confirmed in March 2026, positioned Allen as the second-largest shareholder, leading to Starz's immediate adoption of a shareholder rights plan, widely known as a "poison pill" defense (The Hollywood Reporter, March 2026). This defensive measure aims to prevent unwanted takeovers by making it more expensive for an acquiring party to gain control. Allen expressed his determination to control Starz, indicating that he would buy the entire company if necessary (The Hollywood Reporter, June 2026). This aggressive stance is part of his broader effort to create a "left hook and a right hook" dual AVOD-SVOD streaming strategy. For instance, he plans to integrate BuzzFeed and HuffPost content with his existing AVOD service Local Now, leveraging the established brands to attract more free streaming users (Bloomberg Law, February 2026). This echoes his past interest in acquiring other major media assets, including Paramount from Shari Redstone and ABC from Disney, although those attempts did not materialize (The Hollywood Reporter, June 2026). His recent asset restructuring, including selling a third of his TV station portfolio for $171 million and making layoffs in 2024, reflects a "rightsizing" effort to adapt to linear TV declines and enable further strategic investments in streaming (The Hollywood Reporter, June 2026).
Read full article at msn.com
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source