BuzzFeed announced Wednesday that it will be selling Complex, a media startup known for its coverage of streetwear and pop culture, at a steep discount from its purchase price.
The buyer is Ntwrk, an e-commerce company backed by LiveNation Entertainment and Main Street Advisors, which paid $108.6 million for the company. It is also paying BuzzFeed $5.7 million to cover severance and other costs for Complex employees that BuzzFeed will lay off.
BuzzFeed has announced it will lay off 16 percent of its remaining employees, a move the company expects to save $23 million annually. BuzzFeed does not sell First We Feast, the Internet brand associated with Complex behind the popular hot wing interview series “Hot Ones.”
BuzzFeed co-founder and CEO Jonah Peretti said in a statement that the sale of Complex is an “important strategic step” for the company.
“The changes we are announcing today will take us to an exciting next stage,” he said.
BuzzFeed, which has suffered a significant drop in valuation since going public in 2021, is selling Complex to pay off more than $60 million in debt. BuzzFeed said in its financial filings that it has $150 million in debt due in 2026 and an additional $33.8 million in financing facilities.
The sale of Complex, which generated more than $55 million in revenue last year, is somewhat of an oddity for Wall Street. It’s being sold for a price that exceeds owner BuzzFeed’s market capitalization of approximately $31 million.
BuzzFeed acquired Complex in 2021 for approximately $294 million in cash and stock.
Aaron Levant, Complex’s new chief executive officer, said in a statement that the partnership will create “the definitive global content, commerce and convergent culture experience platform.”