Media entrepreneur and stand-up comedian Byron Allen now is the majority owner of BuzzFeed — the struggling digital media player that Allen plans to use to launch a free-streaming platform that he imagines will rival video colossus YouTube.

“Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content,” said Allen, who is now chairman and CEO of BuzzFeed after buying approximately 51% of its outstanding shares in a $120 million deal. “As of this moment, with the power of AI, BuzzFeed is officially chasing YouTube to become another premier free-streaming video service.”

With Allen taking over the company, BuzzFeed founder and former CEO Jonah Peretti has taken on the newly created role as “president of BuzzFeed AI.” The company said that in the new role, Peretti “will bring his strategic focus to applied AI research, product innovation and the development of new technology-driven media formats.”

Peretti called Allen “a force of nature and an incredible media mogul” and said his skills “are very complementary to mine.”

Allen’s “deep relationships with advertisers, partners and sources of capital free me to focus on what I’ve always loved most: the intersection of tech and media,” Peretti said in a statement. “I’m thrilled to pass him the baton, and even more excited about what comes next. AI is going to create a new medium for content that wasn’t possible before, and I’m convinced the opportunity is enormous.”

With the Allen deal, BuzzFeed Studios and the company’s Tasty brand will be set up as new independent entities but will remain wholly owned subsidiaries of BuzzFeed. That will allow for outside investment in those businesses, as opposed to an investment in the entire portfolio.

But wait. How is BuzzFeed going to challenge YouTube?

Allen previously told Variety that BuzzFeed will build on the foundation of BuzzFeed and HuffPost by expanding into free-streaming video in conjunction with Allen Media Group’s Local Now, a free streaming platform that curates, aggregates and streams “hyperlocal” news, weather, traffic, sports and entertainment based on a user’s ZIP code. Allen’s company also operates a network of 650 free, ad-supported television (FAST) channels and approximately 400 local TV broadcast affiliates.

With those assets, combined with BuzzFeed’s monthly visitors, “the company sees a significant opportunity to bring a new kind of free-streaming experience directly to consumers,” BuzzFeed said. “AI will accelerate content creation, distribution and discovery across both organizations as BuzzFeed builds toward becoming a premier free-streaming video destination.”

BuzzFeed on Wednesday (May 27) announced the closing of its previously announced transaction with Allen Family Digital, an affiliate of Byron Allen’s family office. Under the terms of the agreement, Allen Family Digital acquired 40 million shares of BuzzFeed common stock at a price of $3/share, representing a total transaction value of $120 million for a total purchase price of $120 million. The transaction was funded with $20 million in cash at closing and a $100 million promissory note due five years from closing, accruing interest at 5% annually. BuzzFeed said it used $12.5 million of the cash proceeds from the transaction to pay down existing debt.

Separately, Allen has leased a two-hour nightly comedy block on CBS and has taken over the time-slot previously occupied by “Late Night With Stephen Colbert” (which aired its final show on May 21). “Comics Unleashed With Byron Allen” now airs in back-to-back episodes in the 11:35 p.m. time slot on CBS, followed by two episodes of his comedy show “Funny You Should Ask.”