In an unexpected turn of events, digital media giant BuzzFeed announced the sale of its subsidiary, Complex Networks, to Verizon Media for $108 million. BuzzFeed acquired Complex in 2021 for about $294 million in cash and stock. This decision marks a significant shift in BuzzFeed’s strategy, focusing on strengthening core content areas while divesting from certain assets.
Complex Networks is a leading youth culture brand encompassing platforms such as Complex Magazine, Complex News, and numerous YouTube channels catering to fashion, music, sports, and gaming enthusiasts. The acquisition by Verizon Media will allow Complex to continue expanding its reach and influence within these sectors.
The deal was finalized after months of negotiations between BuzzFeed CEO Jonah Peretti and Verizon Media Group CEO Guru Gowrappan. In a statement released by BuzzFeed, Peretti expressed his confidence in the future success of Complex under new ownership, stating, “We are proud of what we have accomplished with Complex over the past five years, but now is the right time to focus our resources on growing our core business.“
This transaction follows BuzzFeed’s recent restructuring efforts to streamline operations and reduce costs amidst financial challenges faced by many digital publishers. By offloading Complex, BuzzFeed hopes to focus on developing original content across multiple genres, including news, entertainment, and lifestyle programming.
Verizon Media, which owns Yahoo! Finance, TechCrunch, HuffPost, and other popular online properties, aims to leverage Complex’s strong audience engagement metrics and unique voice to bolster its portfolio of brands. According to Gowrappan, “Complex brings us a powerful combination of premium video content, passionate fans, and innovative storytelling capabilities.” He further added, “Together, we can create even more compelling experiences for consumers and advertisers alike.”
As part of this strategic move, BuzzFeed plans to invest heavily in its flagship product, Tasty, a food-focused social platform known for its short recipe videos. Additionally, the company intends to expand its presence in live events, podcasting, and commerce through acquisitions or partnerships.
Despite the sale of Complex, BuzzFeed remains committed to fostering diverse voices and perspectives across all its platforms. As the company continues to evolve, it seeks to maintain its position as one of the most influential digital media companies globally.