BuzzFeed Inc. Is Considering Selling Complex Media to Ecommerce Platform Ntwrk

The entertainment and culture publisher BuzzFeed Inc. is in advanced discussions to sell Complex Media, which it acquired in January 2021 for $300 million, to the livestream ecommerce platform Ntwrk, according to three people familiar with the transaction.

Ntwrk will pay roughly $140 million for the Complex Media assets, which include its portfolio of websites, experiential business, intellectual property and commerce operation. The deal is being managed by Credit Suisse.

Notably, the deal does not include the Complex franchises First We Feast or Hot Ones, which will remain under BuzzFeed Inc. ownership. BuzzFeed Inc. is currently shopping the food properties around to other digital media buyers, according to a source familiar with the titles.

BuzzFeed Inc. declined to comment.

The deal will be financed through Ntwrk’s existing investors: Main Street Advisors, Goldman Sachs, Jimmy Iovine and Live Nation. Ntwrk is also having conversations with other strategic investors, including Universal Music, according to two people familiar with the talks. Universal Music did not respond to a request for comment.

The New York Times first reported BuzzFeed Inc. was considering a sale.

The sale represents a stark about-face for BuzzFeed Inc., which acquired Complex Media in tandem with going public via a special acquisition company. The male-skewing audience of Complex Media, along with its experiential flagship 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. If BuzzFeed Inc. does not raise the value of its stock by Nov. 27, it will be delisted from the Nasdaq.

While Complex Media is profitable, BuzzFeed Inc. is not, according to earnings, and its decision to sell Complex Media reflects its urgent need for cash, according to two people familiar with its finances. The sale could also boost its stock price, buying it time to avoid delisting.

“If you are giving up a revenue-positive asset so shortly after acquiring it, that is not good,” said a person familiar with the transaction. “This is a fire sale.”

Complex Media as a top-of-funnel tool

BuzzFeed Inc. chief executive Jonah Peretti first signaled his openness to selling Complex Media this summer and was in talks with Ntwrk at the time, according to The Information. The media company has since entertained a variety of suitors including SpringHill Company, Revolt and Penske Media, according to three people familiar with the talks.

Ntwrk has been in conversation to acquire Complex Media for months, as the two properties share a number of connections. Several Complex Media staff have left the company to work at Ntwrk, and the founder and CEO of Ntwrk, Aaron Levant, played 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.

Universal Music, a potential strategic partner for Ntwrk, would also benefit from the reach and musical bona fides of Complex Media, which includes music-centric titles like Pigeons & Planes, according to a person familiar with the strategy. In recent years, Universal Music has built out its editorial portfolio, WMX, to use the properties to promote musical artists signed to the label. 

In the new company, Levant is likely to take the role of CEO, while Ntwrk has sought to hire Noah Callahan-Bever, formerly the chief content officer of Complex Media, as president, according to a person familiar with its plan.