BuzzFeed sells Complex for $108.6 million, will lay off some staff

BuzzFeed will sell Complex Networks to live streaming video commerce platform NTWRK at a deep discount and reduce its remaining staff by an additional 16 percent, the company announced Wednesday.

of $108.6 million all-cash transaction Just over two years since BuzzFeed Acquires pop culture media startup Complex It will be sold in December 2021 for nearly $300 million, more than double the current sale price.

NTWRK, that is financially backed The LiveNation Entertainment and Main Street Partners company also provided BuzzFeed with approximately $5.7 million in royalties for the company’s New York office and other employment-related expenses, BuzzFeed said.

BuzzFeed also plans to cut 16% of its workforce in a “planned strategic restructuring” aimed at cutting costs. The restrictions will make BuzzFeed “more agile, sustainable, and profitable,” the company said in a statement.

CEO Jonah Peretti said, “The sale of Complex is an important strategic step for BuzzFeed, Inc. as we adapt our business to become more profitable, agile, and innovative. ”. “This is also an opportunity to unlock greater value for the Complex brand by combining it with his NTWRK’s expansive, commerce-driven business.”

Peretti said the changes will allow BuzzFeed to focus on other brands, including news site HuffPost, food site Tasty & Fast We Feast and the Hot Ones series. said. First We Feast and “Hot Ones” were part of Complex’s brand and will remain with BuzzFeed after the deal. Variety reported.

The deal marks the latest shakeup for BuzzFeed and comes less than a year after the digital media company announced in April that it would shut down its news division. The closure includes layoffs of 15% of the workforce, with Peretti citing the “tech recession” and “tough economy.”

BuzzFeed has been known as a news, quiz, and gaming website since it was founded in 2006, but it has struggled to remain profitable amid a changing media landscape.

This follows a series of job cuts by media companies amid a difficult advertising market and changing news consumption habits. According to reports, more than 800 employees in the media industry lost their jobs in January alone. Data from outplacement support companies Challenger, Gray, and Christmas.