[ad_1]
The live shopping platform Ntwrk has acquired the music and culture publisher Complex Media from BuzzFeed Inc. for $108 million in cash, finalizing a months-long series of discussions between the two companies.
Universal Music Group will serve as a strategic partner in the tie-up, as ADWEEK first reported. Investors in the deal include Main Street Advisors, Jimmy Iovine, Universal Music Group and Goldman Sachs.
“Complex has been a beacon of culture and innovation for over two decades,” said Aaron Levant, founder of Ntwrk and the new CEO of Complex.
“My journey with Complex began as an admirer of their original magazine in 2002, and it has now come full circle as I step into the leadership role. Alongside this impressive team, we will create the definitive global content, commerce and experiential platform of convergence culture,” he added.
The deal does not include key Complex Media franchises, such as First We Feast or Hot Ones, which will remain under BuzzFeed Inc. ownership.
As part of the acquisition, BuzzFeed Inc. will also receive $5.7 million related to the use of its offices and other employment-related costs, according to the publisher.
BuzzFeed Inc. will also reduce its workforce by 16% as part of the deal, which is expected to yield $23 million in annualized savings. The details of the restructuring will be shared on Feb. 28.
“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,” said BuzzFeed Inc. CEO Jonah Peretti. “This is also an opportunity to unlock greater value for the Complex brand by combining it with Ntwrk’s expansive commerce-driven business.”
Complex and Ntwrk deal logic
Complex Media was originally acquired by BuzzFeed Inc. in 2021 for $198 million in cash and $96 million in equity, but structural headwinds challenging the BuzzFeed business have led it to consider options for procuring cash to pay down looming debt obligations.
The sale represents a stark about-face for BuzzFeed Inc., which acquired Complex Media in tandem with going public via a special acquisition company (SPAC). The male-skewing audience of Complex Media, along with its experiential flagship event ComplexCon and its commerce business, aimed to complement BuzzFeed Inc., which also owns HuffPost.
But the economy has shifted drastically since BuzzFeed Inc. acquired Complex Media, and the social publisher has fared poorly on the open exchange, with its stock trading at less than $1.
