BuzzFeed has announced today that it has closed a deal with NTWRK to sell Complex in an all-cash deal that totals $108.6 million USD. The news comes less than three years after BuzzFeed purchased Complex from Hearst and Verizon for nearly $300 million USD (split between $198 million USD in cash and $96 million USD in equity).
In addition to the $108.6 million USD in cash, BuzzFeed also received approximately $5.7 million USD for severance, use of office space and other costs related to its employees. Proceeds are said to be used towards debt management, optimizing working capital and financing strategic restructuring. 16% of BuzzFeed‘s remaining workforce is said to be reduced, with more details arriving on February 28 in an attempt to “become more agile, sustainable and profitable.” Notably, the First We Feast brand, which includes the hit series Hot Ones, was not sold to NTWRK and remains part of BuzzFeed.
“The changes we announced today will enable an exciting next stage for our company, with increased focus on our iconic brands … a more efficient cost structure and operational model; and the ability to accelerate innovation powered by AI and interactive content formats. I look forward to sharing more in the coming months,” noted BuzzFeed CEO Jonah Peretti.
Moving forward, BuzzFeed is scheduled to release its fourth quarter and full year financial results for 2023 on March 25.
