BuzzFeed sells Complex for a loss, announces job cuts
BuzzFeed has sold entertainment media brand Complex to livestream shopping platform NTWRK for $108.6 million, marking a major strategy shift for the company. It had acquired Complex for $300 million in 2021. After going public two years ago to raise funds for acquisitions and expansion, BuzzFeed now plans to cut expenses, including laying off 16% of its workforce. The sale comes as BuzzFeed faces financial struggles and an uncertain future as a public entity.
BuzzFeed will keep popular franchises like 'First We Feast'
In an all-cash deal, BuzzFeed will keep some of Complex's popular franchises, such as 'First We Feast' and 'Hot Ones.' NTWRK CEO Aaron Levant believes the acquisition is a good fit due to the audience overlap between NTWRK's customers and Complex fans. Levant plans to invest heavily in Complex, expanding its flagship event ComplexCon and making the brand shoppable, with "Sneaker Shopping" being its top YouTube show.
Commerce and media synergy
More media companies are turning to commerce as a way to diversify their businesses given the weaker ad market. Levant argues that this deal is more sustainable than previous attempts at media companies launching commerce or e-commerce companies launching media. He underlined the core competency of the two companies in their respective fields. NTWRK has raised at least $60 million from investors such as Live Nation, Foot Locker, luxury company Kering, LionTree Partners, Tenere Capital, and Main Street Advisors.
BuzzFeed's struggles and future outlook
Since BuzzFeed's turbulent public debut in December 2021, the company has faced challenges in the public market. It received a delisting notice from NASDAQ in June and was granted a stay of execution last month, giving it until May to raise its stock price from around 30 cents to $1. BuzzFeed has reduced its staff multiple times and closed its Pulitzer Prize-winning newsroom last year. With the announced cutbacks, BuzzFeed expects to save $23 million.
BuzzFeed share continues to languish
Ahead of the sale of Complex to NTWRK, the stock of BuzzFeed traded at 22 cents which marked a fall of 8.5% since yesterday. The company hopes to raise investor confidence through cost-cutting announcements.
