BuzzFeed Complex Networks Sale: BuzzFeed appears to be in the midst of a significant shift in its digital media strategy as it engages in advanced talks to sell Complex Networks, a digital media company known for its streetwise approach and the popular ComplexCon cultural festival.
The deal is expected to see Ntwrk, an e-commerce company backed by Live Nation Entertainment and Main Street Advisors, acquire Complex for less than half of what BuzzFeed paid for it just two years ago, with a reported price tag of less than $140 million, compared to the $300 million purchase price in 2021.
This move reflects the broader challenges facing the digital media industry, as companies grapple with evolving business models, revenue struggles, and shifting audience dynamics. BuzzFeed’s decision to divest itself of Complex Networks comes as the company grapples with a decline in its stock price since going public in 2021. Once valued at $1.7 billion in 2016, BuzzFeed’s market value has dwindled to approximately $40 million, highlighting the harsh reality of the digital media landscape.
BuzzFeed intends to retain First We Feast, a division of Complex known for its “Hot Ones” interview franchise, which has amassed billions of views on YouTube. This segment will be integrated into BuzzFeed’s portfolio of brands with a focus on food culture, including the popular recipe guide Tasty.
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The digital media industry has witnessed a series of consolidations marked by high valuation deals that later faced significant devaluation. For instance, Vice Media acquired Refinery29 in a deal valued at $400 million, only to later face financial difficulties leading to bankruptcy. Group Nine Media bought PopSugar for $300 million and subsequently sold to Vox Media at a much-reduced valuation.
The acquisition of Complex represents a notable expansion for Ntwrk, an e-commerce company backed by prominent figures from the technology, media, and sports industries, including LeBron James, Arnold Schwarzenegger, and Jimmy Iovine.
The strategic plan for Complex involves leveraging its substantial digital audience to sell products like shoes and apparel, given Complex’s strong coverage of streetwear and the popularity of its ComplexCon festival, which draws enthusiastic crowds of streetwear enthusiasts and sneakerheads annually.
This deal illustrates the ever-shifting dynamics of the digital media landscape, where adaptability and strategic maneuvers are crucial for survival and growth. As BuzzFeed navigates these changes, it will be interesting to see how this move influences the company’s future direction and prospects in the challenging digital media environment.
Our Reader’s Queries
How much did BuzzFeed pay for Complex?
BuzzFeed has reportedly shelled out a whopping $300 million to acquire Complex in 2021. However, the media giant is said to be retaining First We Feast, the division behind the highly popular Hot Ones interview series. This move is expected to further strengthen BuzzFeed’s position in the digital media landscape.
Who bought Complex?
BuzzFeed made headlines in late 2020 when it acquired HuffPost. However, the company’s CEO, Jonah Peretti, didn’t stop there. In June of 2021, he announced the acquisition of Complex, a popular site for rap enthusiasts and sneaker aficionados. Peretti believes that the addition of Complex’s audience, which is predominantly male and diverse, will strengthen BuzzFeed’s overall presence. With this bold move, BuzzFeed is poised to continue its growth and expand its reach even further.
Who owns complex networks?
In late 2021, BuzzFeed made a significant acquisition by purchasing Complex Networks for nearly $300 million. This move is expected to have a major impact on the media industry and solidify BuzzFeed’s position as a leading player in the market. With this acquisition, BuzzFeed is poised to expand its reach and offer even more engaging content to its audience. The deal is a testament to BuzzFeed’s commitment to growth and innovation, and it will be interesting to see how the company leverages this new acquisition in the years to come.