May 11 (Reuters) - BuzzFeed BZFD.O said on 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' META.O Instagram.

• 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 funded with $20 million in cash and a $100 million promissory note due five years after closing, carrying an annual interest rate of 5%, the company said.

• BuzzFeed also reported a 12.4% decline in first-quarter revenue to $31.6 million, while its net loss widened to $15.1 million from $12.5 million a year earlier.

• The company, which withheld its annual forecast, said it expects to provide an update on its financial outlook in the coming months.

• BuzzFeed went public in 2021 through a blank-check merger that valued the company at about $1.5 billion. Its shares have fallen more than 98% since then.