US media giant Comcast’s NBCUniversal is reportedly investing US$200m in online news giant BuzzFeed and a further US$200m in Vox Media, owner of The Verge, Re/Code and SB Nation.
BuzzFeed is expected to have a US$1.5bn valuation after the NBCUniversal investment while Vox Media will have a valuation of around US$1bn.
According to Re/Code, Vox Media and NBCUniversal will have a commercial partnership that involves collaboration on cross-branding, video advertising and video programming.
NBC Universal owns major TV channels like Bravo, E! and MSNBC. Like most traditional media it is transforming itself to better cope with the digital age and arrest declining viewership among younger audiences who are spending more time online.
According to the Wall Street Journal, Vox Media, which has a stable of eight websites focused on sports, politics, food, fashion and technology, has a strong audience of young readers, with 41pc of its 54.1m unique users aged between 18 and 34.
BuzzFeed also has a large audience of younger readers, with 54pc of its 79.6m unique visitors aged between 18 and 34, according to comScore.
NBC Studios New York image via Shutterstock