BuzzFeed sells Complex for $109m

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BuzzFeed has finalized the sale of its Complex division to NTWRK, a live stream shopping platform, for $109 million. This strategic move is part of BuzzFeed's broader restructuring efforts, which include a significant workforce reduction of 16 percent. The sale to NTWRK, valued at $108.6 million in an all-cash transaction, marks a significant shift for BuzzFeed, which had acquired Complex Networks in 2021 for nearly $300 million. Despite this divestiture, BuzzFeed will retain ownership of First We Feast, a popular food content brand known for producing the hit YouTube series Hot Ones. The decision to sell Complex is described by BuzzFeed CEO Jonah Peretti as a crucial step towards making BuzzFeed more profitable, agile, and innovative. This sale is expected to enable both BuzzFeed and the new Complex entity to focus more intently on their respective core areas: BuzzFeed on news, food, and pop culture, and Complex on fashion, sneakers, streetwear, and pop culture. The deal also involves strategic partnerships, including one with Universal Music Group, aimed at delivering unique experiences and content to music fans. The proceeds from the sale will be used by BuzzFeed to address its financial obligations, including redeeming a portion of its 2026 convertible notes and fully paying off its revolving credit facility. This financial maneuvering comes at a time when BuzzFeed is facing significant challenges, including a substantial net loss and a decline in revenue, prompting the company to focus on generating cash and growing revenue from its core assets. The restructuring and sale are part of BuzzFeed's response to the evolving digital media landscape, which has seen many media companies, including BuzzFeed, reevaluate their business models and strategies in light of financial pressures and changing market dynamics.
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