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

Comcast Corp (NASDAQ:CMCSA) cut its stake in BuzzFeed, Inc (NASDAQ: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 (NASDAQ: 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 (NASDAQ: 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.