BuzzFeed sells entertainment media company Complex to live commerce company Ntwrk for approximately 16 billion yen, significantly lower than the acquisition price
American media giant
BuzzFeed Sells Complex, a Pop Culture Start-Up, for $108.6 Million - The New York Times
https://www.nytimes.com/2024/02/21/business/buzzfeed-complex-sale.html
BuzzFeed sells Complex for $108 million, announces job cuts
https://www.axios.com/2024/02/21/buzzfeed-sells-complex
BuzzFeed Sells Complex to Ntwrk, Lays Off 16% of Remaining Workforce
https://variety.com/2024/digital/news/buzzfeed-sells-complex-ntwrk-layoffs-1235918498/
Founded in 2006, BuzzFeed has a strong presence as a major online media, and was listed on the Nasdaq market in 2021. In addition, in the same year, we acquired Complex, an entertainment media for young people, for a total of $294 million (approximately 32.3 billion yen at the exchange rate at the time), and have been seeking to expand our services.
However, BuzzFeed subsequently faced headwinds such as a decline in traffic from SNS, a slump in the technology industry, and a slowdown in the digital advertising market. In April 2023, it announced that it would close its news division BuzzFeed News as part of its personnel reduction plan, and the stock price at the time of article creation was only 22 cents (about 33 yen). We have also received a notice that if the stock price does not exceed $1 (approximately 150 yen) by May 28, 2024, we will be delisted from the NASDAQ market.
Meanwhile, BuzzFeed announced that it has sold Complex to live commerce company Ntwrk for $108.6 million. In addition to the sale price, BuzzFeed will pay an additional $5.7 million (approximately 857 million yen) for expenses related to the New York office used by Complex, severance pay for Complex employees fired by BuzzFeed, and other employment-related expenses. It is said that he received it.
BuzzFeed also announced plans to lay off 16% of its employees in order to rebuild its finances. 'The sale of Complex is an important strategic step for BuzzFeed as we adapt to a more profitable, agile, and innovative business,' said Jonah Peretti, CEO of BuzzFeed. This is also an opportunity to unlock greater value by combining this with a commerce-driven business.'
By acquiring Complex, Ntwrk, which operates a live commerce platform, will be able to strengthen its ability to communicate to young people, who are the main customer group for live commerce. Ntwrk CEO Aaron Levant told news site Axios: 'Complex appeals to a demographic similar to ours: 18- to 34-year-old men who like sneakers, streetwear, and hip-hop. We want to be able to shop at Complex.'
Please note that BuzzFeed has not sold all of Complex's brands to Ntwrk, and will continue to retain ownership of some popular franchise brands, such as
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