BuzzFeed Inc. Shares Soar After Selling Complex Site
Shares of BuzzFeed Inc. (BZFD, -8.50%) surged over 90% in after-hours trading on Wednesday following the announcement that the media company had divested the pop-culture site Complex. Additionally, BuzzFeed revealed plans to lay off 16% of its remaining staff, amidst the ongoing restructuring within the digital-media industry.
Strategic Moves to Boost Profitability
In a significant strategic move, BuzzFeed sold Complex to NTWRK, an online shopping platform, for a total of $108.6 million in cash. This transaction, coupled with the decision to streamline operations by reducing staff, comes in the wake of BuzzFeed‘s closure of its news division last year.
CEO’s Perspective
Commenting on these developments, BuzzFeed Chief Executive Jonah Peretti emphasized the importance of these changes in enhancing the company’s profitability and innovation. He stated, “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.”
Unlocking Value Through Collaboration
Peretti also highlighted the potential for greater value creation by leveraging the synergies between the Complex brand and NTWRK‘s commerce-driven business model. The collaboration between the two entities is anticipated to lead to mutually beneficial outcomes.
This series of strategic initiatives underscores BuzzFeed‘s commitment to realigning its operations for sustainable growth and long-term success in the competitive digital-media landscape.
