BuzzFeed said Monday media entrepreneur Byron Allen will take over as the digital media company’s next CEO after he entered into a deal to buy a stake of about 52% in the digital media company for $120 million.

Shares of BuzzFeed soared about 156% in extended trading.

The company has been grappling with a cash crunch as advertisers increasingly shift spending to social media platforms such as TikTok and Meta Platforms’ Instagram.

Media entrepreneur Byron Allen acquired a 52$ stake in BuzzFeed for $120 million. Getty Images for Blueprint Capital Advisors

Under the deal, Allen Family Digital will acquire 40 million BuzzFeed shares at $3 apiece, a 265.9% premium to Friday’s closing price.

BuzzFeed’s market capitalization stands at roughly $31 million, according to data compiled by LSEG.

Upon closing of the deal, BuzzFeed founder & CEO Jonah Peretti will handover charge to Allen and move into a newly created role as president of BuzzFeed AI.

The deal, expected to close by the end of the month, will be…