BuzzFeed Sells Complex, a Pop Culture Start-Up, for $108.6 Million

BuzzFeed stated on Wednesday that it was promoting Complex — a media start-up recognized for its protection of streetwear and popular culture — at a major low cost from its buy worth.

The purchaser is Ntwrk, an e-commerce firm backed by LiveNation Entertainment and Main Street Advisors, which is paying $108.6 million for the corporate. It can also be paying BuzzFeed $5.7 million to cowl severance bills of Complex staff whom BuzzFeed is shedding, together with different prices.

BuzzFeed stated it was shedding 16 % of its remaining work power, a transfer it expects will save the corporate $23 million yearly. BuzzFeed shouldn’t be promoting First We Feast, the web model related to Complex behind the favored “Hot Ones” interview collection about sizzling wings.

Jonah Peretti, BuzzFeed’s co-founder and chief government, stated in a press release that promoting Complex was “an necessary strategic step” for the corporate.

“The adjustments we introduced at present will allow an thrilling subsequent stage for our firm,” he stated.

BuzzFeed, which has suffered a steep low cost in its valuation because it went public in 2021, is promoting Complex to repay greater than $60 million in debt. BuzzFeed stated in a monetary submitting that it had $150 million in debt due in 2026 and an extra $33.8 million from a line of credit score.

The sale of Complex, which generated greater than $55 million of income final 12 months, is one thing of an oddity for Wall Street: It is being bought for greater than the market capitalization of its proprietor, BuzzFeed, which is about $31 million.

BuzzFeed acquired Complex in 2021 for about $294 million in money and inventory.

Paul Wachter, the chief government of Main Street Advisors, stated the acquisition would create a enterprise “designed for the way forward for content material and commerce.”