Complex Media Acquired by Live-Shopping Platform Ntwrk

The live shopping platform Ntwrk has acquired the music and culture publisher Complex Media from BuzzFeed Inc. for $108 million in cash, finalizing a months-long series of discussions between the two companies. Universal Music Group will serve as a strategic partner in the tie-up, as ADWEEK first reported. Investors in the deal include Main Street Advisors, Jimmy Iovine, Universal Music Group and Goldman Sachs. “Complex has been a beacon of culture and innovation for over two decades,” said Aaron Levant, founder of Ntwrk and the new CEO of Complex. “My journey with Complex began as an admirer of their original magazine in 2002, and it has now come full circle as I step into the leadership role. Alongside this impressive team, we will create the definitive global content, commerce and experiential platform of convergence culture,” he added. The deal does not include key Complex Media franchises, such as First We Feast or Hot Ones, which will remain under BuzzFeed Inc. ownership. Exclusive: BuzzFeed Inc. Announces Strategic Shift, Longtime Publisher Steps Down As part of the acquisition, BuzzFeed Inc. will also receive $5.7 million related to the use of its offices and other employment-related costs, according to the publisher. BuzzFeed Inc. will also reduce its workforce by 16% as part of the deal, which is expected to yield $23 million in annualized savings. The details of the restructuring will be shared on Feb. 28. “The sale of Complex represents an important strategic step for BuzzFeed Inc. as we adapt our business to be more profitable, more nimble and more innovative,” said BuzzFeed Inc. CEO Jonah Peretti. “This is also an opportunity to unlock greater value for the Complex brand by combining it with Ntwrk’s expansive commerce-driven business.” Complex and Ntwrk deal logic Complex Media was originally acquired by BuzzFeed Inc. in 2021 for $198 million in cash and $96 million in equity, but structural headwinds challenging the BuzzFeed business have led it to consider options for procuring cash to pay down looming debt obligations. The sale represents a stark about-face for BuzzFeed Inc., which acquired Complex Media in tandem with going public via a special acquisition company (SPAC). The male-skewing audience of Complex Media, along with its experiential flagship event ComplexCon and its commerce business, aimed to complement BuzzFeed Inc., which also owns HuffPost. But the economy has shifted drastically since BuzzFeed Inc. acquired Complex Media, and the social publisher has fared poorly on the open exchange, with its stock trading at less than $1. Complex and Ntwrk share a number of connections beyond their overlapping audience: Several Complex Media staff have left the company to work at Ntwrk. Levant also had a critical role in launching ComplexCon in 2016. On paper, Complex Media brings scale and a socially savvy demographic to pair with the Ntwrk platform. Its annual ComplexCon event, a haven for sneakerheads, streetwear and hip-hop, also offers a built-in vehicle for retail opportunities. The Complex properties would serve a top-of-funnel function for the Ntwrk business, and the acquisition reflects the growing trend of media companies serving as customer acquisition tools for retail owners. “Aaron Levant, along with Jamie Iovine and Gaston Dominguez-Letelier, are building an incredible platform, and this acquisition will exponentially accelerate its growth,” said Iovine, founder of Interscope Records and Beats by Dre. “Combining the power and reach of Complex with the Ntwrk engine serving creators across music, fashion and art will be transformative for the next generation of consumer technology,” Iovine added.

Merger & Acquisition News

Complex Media Acquired by Live Shopping Platform Ntwrk for $108 Million

BuzzFeed Inc. originally bought the publisher in 2021 for nearly $300 million

Mark Stenberg

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