The deal brings two once-hot digital properties - viewed as the future of news media but which have suffered from competition for ad dollars from Alphabet's Google and Facebook - under the control of one of HuffPost's co-founders.
"For several years, I spent my every waking moment on HuffPost and how to grow it and how to turn it into a leading media brand on the internet", Peretti said in an interview. It also tested the market for potential buyers of Yahoo Finance, according to Reuters reporting, but ultimately ended that search.
"Verizon Media's strategy has evolved over the past two years to focus on our core strengths - ads, commerce, content and subscriptions", said Guru Gowrappan, the Verizon Media chief executive "The partnership with BuzzFeed complements our road map while also accelerating our transformation and growth".
"With the addition of HuffPost, our media network will have more users, spending significantly more time with our content than any of our peers", Peretti stated.
Together, the companies reach hundreds of millions of young, liberal-leaning audiences with news and culture content.
The acquisition is part of a broader agreement between the two companies that includes technology sharing, cross-platform content promotion and a cash investment from Verizon Media into BuzzFeed, according to The Wall Street Journal. BuzzFeed will tap into Verizon Media's ad platform, as well as Verizon Media Immersive, its online XR (extended reality) platform for advertising and content.
Peretti said in a memo to BuzzFeed employees that he expects the deal to close at the beginning of 2021.
"We are deeply invested in the continued success of HuffPost, and I couldn't think of a better partner to take HuffPost to the next level", he added.
BuzzFeed and Verizon did not disclose terms of the deal.
Verizon has struggled to grow its media properties, declaring them almost worthless with a $4.6 billion write-down in 2018.