As media companies around the world scramble to cut costs, BuzzFeed Germany has been put up for sale by the New York-based digital publisher.
BuzzFeed Germany director Daniel Drepper confirmed on Twitter on April 7 that the US media company BuzzFeed is looking to sell its German branch. The main reason for this decision, according to Mark Rogers, General Manager of BuzzFeed Europe, is the pandemic COVID-19 crisis.
It’s true, BuzzFeed Germany is up for sale. I’m damn proud of what we have done over the past few yearsDaniel Drepper, Chief Editor
BuzzFeed has been struggling to cut costs after missing revenue targets in previous years. Last year the digital player laid off close to 15 percent of staff amid a nation-wide cut that saw over 1,000 jobs lost in just the last week of January 2019.
The lockdown-driven decline in advertising revenues and other sources of media income comes at the worst possible time for many media. In March BuzzFeed announced it would be cutting salaries – 5% for those with the lowest pay, and up to 25% for executives.
[“Yes, it’s true, BuzzFeed Germany is up for sale. I’m damn proud of what we have done over the past few years. And, I hope we can find a partner so that my great colleagues can continue their work”].
The US media company BuzzFeed has already been in the German market for over 5 years. But after being hit by the coronavirus crisis, they are looking for investors to support their German business.
In a letter to the German editorial team, Mark Rogers wrote the company is looking for partners that will enable them to continue doing business in Germany. Rogers noted that no one could have predicted the global downturn sparked by the COVID-19
While everything possible is being done to protect BuzzFeed’s business in the long term, Rogers claimed that “currently, there are no financial resources available to support a business that has not managed to become strong before the crisis”.