Comcast Capitalizes On ChatGPT Fueled BuzzFeed Rally, Slashes Exposure In Digital Media Company

  • Comcast Corp CMCSA cut its stake in BuzzFeed, Inc BZFD by 8.5% since the end of January, cashing in on a rally on reports of collaboration with OpenAI, the artificial intelligence firm behind ChatGPT.
  • Comcast has sold over 11 million BuzzFeed shares since January 30, reducing its stake to 15% from 24%. The sale fetched Comcast about $28 million, Reuters reports.
  • NBCUniversal, Comcast's entertainment unit, had invested $200 million in BuzzFeed in 2015 and injected another $200 million in 2016, valuing the company at $1.7 billion.
  • As of Tuesday's close, BuzzFeed had a market value of just about $250 million.
  • Buzzfeed's shares, trading at 69 cents at the close of 2022, surged as high as $4.25 in January following reports of a multi-million dollar content deal with Meta Platforms Inc META and ChatGPT.
  • Retail investor interest in AI-related shares has risen since last month after OpenAI drew a multi-billion dollar investment from Microsoft Corp MSFT.
  • BuzzFeed reduced its workforce in 2022 as businesses cut down on ad spending on concerns over a slowing economy.
  • Price Action: BZFD shares traded lower by 4.59% at $1.77 on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsPenny StocksMoversTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!