US cable giant Comcast (NASDAQ: CMCSA) has added to its media and advertising portfolios, agreeing to invest in BuzzFeed and acquire This Technology.
Comcast’s media and entertainment unit NBCUniversal and Buzzfeed confirmed the long-rumoured deal in a joint statement, with the former saying it has agreed to make a US$200m equity investment in the digital media company. As part of the investments, the companies will explore strategic partnerships over the coming months.
The deal values BuzzFeed, which claims to have 200 million unique and 1.5 billion video views a month, at US$1.5bn, according to sources cited by the Wall Street Journal.
This marks the second digital media investment for Comcast this month: last week, the company announced it had agreed to invest US$200m in Vox Media, which has eight websites focusing on subjects including news, sport, gaming, culture and technology, shopping, real estate and business technology. The deal reportedly valued Vox at US$1bn.
The cableco’s expansion in digital media could help it to counteract the increasing number of customers cancelling cable subscriptions in favour of online video services.
NBCUniversal CEO Steve Burke said BuzzFeed, which produces and distributes news, entertainment and video, has “built an exceptional global company that harmonises technology, data and superior editorial abilities to create and share content in innovative way”.
“They reach a massive loyal audience and have proved to be among the most creative, popular and influential new media players,” he continued.
BuzzFeed founder and CEO Jonah Peretti said his company is excited to partner with NBCUniversal as social, mobile, digital and broadcast platforms converge, creating new opportunities to connect with global audiences.
BuzzFeed executive chairman Kenneth Lerer said the companies will collaborate on TV content, movies, the Olympics and joint partnerships with ad agencies and brands.
This Technology buy
Comcast has also announced it has agreed to acquire advertising technology firm This Technology to help aid its transition to IP video.
The financial details of the deal were not disclosed.
Comcast chief technology officer Tony Werner commented: “This Technology’s innovative digital infrastructure platform and dynamic team of technologists have long played critical roles in our ongoing mission to evolve our video delivery infrastructure.”
Integrating the Denver-based company into Comcast’s advanced video group will help it to accelerate its development cycles and boost its ongoing transition to IP video, he added.
This Technology specialises in dynamic ad insertion and has a content delivery platform which enters play during TV blackouts.
The company said its products and services will developed and sold as part of the Comcast Wholesale solution portfolio.
This is also Comcast’s second recent acquisition in the advertising technology space: in June, it agreed to buy New York-based targeted TV ad firm Visible World, also for an undisclosed sum.
Last year, it bought online video advertising start-up FreeWheel Media for US$320m.