Tuesday, April 16, 2024

Woke BuzzFeed Goes Broke, Loses $106.4M

'There's no denying that 2022 was a tough year for digital media...'

(Dmytro “Henry” AleksandrovHeadline USA) BuzzFeed, one of the more aggressively woke media outlets, announced its financial results for the full year and fourth quarter on Monday, reporting a huge net loss.

BuzzFeed claimed that one of the major reasons why it lost a lot of money is because it kept a majority of its cash and cash equivalents at the recently-defunct Silicon Valley Bank since the company is located in California, according to the Post Millennial.

The statement also quoted a joint release from the US Department of the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation, claiming that depositors would be fully protected from the bank’s folding.

“There’s no denying that 2022 was a tough year for digital media. The challenges we faced in Q4 are also impacting us in Q1 2023, and it is clear we have more work to do to realize the full potential of our combined brand portfolio,” Jonah Peretti, BuzzFeed Founder & CEO, wrote, admitting that the fourth quarter was particularly difficult for the company.

“As we work to address these challenges, our value proposition continues to resonate strongly in the marketplace,” Peretti assured. “With iconic brands, a massive audience and a differentiated technology platform, we occupy a unique position in the ecosystem of audiences, creators, platforms and advertisers. And, our work in the exciting new areas of creators and artificial intelligence are continuing to lead the way in defining the future of media.”

BuzzFeed also lost “$201.3 million, including a non-cash goodwill impairment charge of $102.3 million, compared to net income of $25.9 million in 2021.”

“During the latest quarter, BuzzFeed posted a non-cash goodwill impairment charge of $102.3 million, in part due to a steep decline in the value of the company’s stock price in Dec. 2022,” according to the Hollywood Reporter.

Buzzfeed brought in $134.6 million in overall revenues during the fourth quarter, with the company ending the quarter with $106 million in net losses, compared to a year-earlier profit of $41.5 million.

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