Investors had been fleeing BuzzFeed's stock as the once-popular media outlet found itself in deeper financial straits. But they appear to be warming to it again now that the company says it's received a $120 million lifeline from producer Byron Allen.

Shares of BuzzFeed $(BZFD)$ catapulted around 120% higher in overnight trading, following a statement that an affiliate of Allen's family office, Allen Family Digital, had agreed to take a majority stake in the media company. The transaction is set to close by the end of this month.

The move would install Allen as BuzzFeed's new CEO. Jonah Peretti, BuzzFeed's founder and its current CEO, will become president of BuzzFeed AI, a newly-created position.

In a statement, Allen said he planned to expand BuzzFeed further into free streaming video, as well as audio and user-generated content.

Peretti said he was confident that Allen's "relationships with talent will bring some incredible stars to the BuzzFeed platform." But he added that the company would be cutting some costs as it prepares for Allen's arrival, and said the company would set up BuzzFeed Studios and Tasty as a new independent entity.

The news comes as the media and entertainment universe consolidates, cutting both costs and staff amid a shift away from movie theaters and traditional television. The Trump administration has also put greater political pressure on the industry.

Under the agreement, Allen Family Digital will buy up 40 million shares of BuzzFeed at $3 apiece, for a total price tag of $120 million. That deal would give Allen Family Digital around 52% of BuzzFeed's outstanding shares. The purchase will be funded with $20 million in cash at the deal's closing and a $100 million promissory note due five years from that time.

Meanwhile, Allen is preparing to expand his media profile elsewhere. His talk show "Comics Unleashed" will take the place of "The Late Show with Stephen Colbert" on CBS, which is owned by Paramount Skydance $(PSKY)$. Colbert's show ends this month.

Allen founded Allen Media Group in 1993. He owns 13 ABC , CBS and NBC network affiliate TV stations in 11 U.S. markets, as well as 10 24-hour HD television networks, according to BuzzFeed's announcement on Monday.

As of the close of trading Monday, shares of BuzzFeed are still down more than 60% over the past 12 months. Even if BuzzFeed's big after-hours stock move holds through the close of Tuesday's regular session, shares would still be trading more than 95% below their peak close from March 2021.

Founded some two decades ago, BuzzFeed once rode venture-capital money and its intricate understanding of the internet and social-media landscape to a valuation of over $1 billion. But profitability remained elusive. Efforts to expand through acquisitions - the company also runs HuffPost - haven't satisfied investors.

Earlier this month, BuzzFeed said it had missed a deadline for a $5 million debt payment at the end of April. It also said it had moved to extend the due date to May 18.

During its first quarter, BuzzFeed reported a net loss of $15.1 million, the company said Monday, a bit deeper than $12.5 million loss in the same quarter a year ago. Revenue fell 12.4% to $31.6 million.