BZFD - BuzzFeed Shares More Than Double Following $108.6M Complex Sale Plans To Layoff 16% Staff | Benzinga
BuzzFeed Inc‘s (NASDAQ:BZFD) share price rose by 137.42% to $0.52 in after-hours trading after the company revealed the sale of Complex Networks to NTWRK, a live-streaming video commerce platform.
The deal, valued at $108.6 million, will also result in a 16% reduction in BuzzFeed’s workforce.
What Happened: The all-cash transaction, announced on Wednesday, marks a significant decrease in the value of Complex Networks since BuzzFeed’s acquisition in December 2021. At that time, the pop culture media startup was purchased for nearly $300 million, more than double the current sale price, reported The Hill.
NTWRK, financially supported by LiveNation Entertainment and Main Street Partners, will also provide BuzzFeed with approximately $5.7 million for the use of its New York offices and other employment-related expenses.
BuzzFeed will also undergo a 16% workforce reduction as part of a planned strategic restructuring aimed at reducing the company’s expenses. This move is expected to make BuzzFeed “more agile, sustainable and profitable,” according to a company statement.
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