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BuzzFeed Inc. revealed it has sold off its entertainment media brand, Complex, for $108.6 million. The company mentioned NTWRK livestream shopping platform as the buyer.
BuzzFeed acquired Complex in 2021 for $300 million, so the deal is a loss for the company. The online media, news, and entertainment company announced the sale of its media brand on Wednesday, Feb. 21.
Why the Move to Sell Matters
The deal clearly shows a massive shift after BuzzFeed went public in 2022. It went for an IPO to raise funds to acquire companies and calibrate its offerings. However, it is not forced to sell some of its most profitable assets and franchises. As per Axios, this is a crucial move so it can stay in the business amid struggles in the public market.
BuzzFeed is reportedly planning to sell its Tasty social media food platform. At any rate, in the deal, the company will retain ownership of some popular franchises under Complex, such as First We Feast, which produces the platform’s “Hot Ones” YouTube program.
Upcoming Layoffs
Unfortunately, following the sale of Complex, the media firm will also be terminating jobs. BuzzFeed plans to lay off 16% of its workforce to cut costs. This is part of a restructuring strategy to save and reduce expenses.
The company will use the proceeds from the sale of Complex to boost its balance sheet while paying off debts. On the other hand, it was reported that the Universal Music Group and other investors of NTWRK are helping finance the acquisition deal.
“The sale of Complex represents an important strategic step for BuzzFeed, Inc. as we adapt our business to be more profitable, more nimble, and more innovative,” BuzzFeed’s CEO, Jonah Peretti, said in a press release. “This is also an opportunity to unlock greater value for the Complex brand by combining it with NTWRK’s expansive, commerce-driven business.”
He added, “The changes we announced today will enable an exciting next stage for our company, with an increased focus on our iconic brands - BuzzFeed, HuffPost, First We Feast and Hot Ones, and Tasty; a more efficient cost structure and operational model; and the ability to accelerate innovation powered by AI and interactive content formats.”
Photo by: BuzzFeed Website
