BuzzFeed makes US$300m media company buy, goes public through SPAC deal

BuzzFeed has agreed to acquire Complex Networks - a global youth entertainment company with content around style, food, music, sneakers and pop culture. The US$300 million acquisition of Complex - consisting of US$200 million in cash and US$100M of equity in BuzzFeed - is expected to close in the fourth quarter of 2021.

The announcement follows BuzzFeed’s disclosure that it is seeking to go public by merging with 890 Fifth Avenue Partners, a special purpose acquisition company (SPAC) with US$288 million in cash in trust. BuzzFeed has also secured approximately US$150 million in convertible note financing led by Redwood Capital Management and including CrossingBridge Advisors, Cohanzick Management, and Silver Rock Financial LP.

Complex was co-founded by Rich Antoniello and Marc Ecko in 2002 as a media brand, and has content spanning digital, video, audio media, and live events with an online community that reaches a multicultural audience who share a passion for what's now and next in pop culture and style. Today, Complex Networks includes Complex (pop culture), First We Feast (food entertainment), Pigeons and Planes (music discovery), Sole Collector (sneaker news), and its festival of cultural convergence ComplexCon.

Following the transaction, Complex Networks will remain editorially independent, but benefit from the application of BuzzFeed’s data science, distribution network, and lines of business - including commerce - to accelerate revenue growth.

BuzzFeed has a strong portfolio of brands in key categories with two Pulitzer Prize-winning newsrooms, BuzzFeed News and HuffPost; BuzzFeed, the flagship entertainment brand that curates the internet and culture; and Tasty Lifestyle Brands, which includes the world's largest food network and several other lifestyle brands that help its audiences live better.

“I’m incredibly excited to welcome Complex Networks to BuzzFeed. Complex is one of the most interesting and dynamic companies in the space, and a true leader in culture and entertainment,” said BuzzFeed founder and CEO Jonah Peretti. “The fact that the Complex audience skews more male and more diverse than BuzzFeed will make our company stronger. And I want to thank Antoniello for agreeing to come on as an advisor to BuzzFeed - he’s one of the most innovative, visionary entrepreneurs I know.”

Antoniello added that for nearly 20 years, Complex Networks has been an outlier and its success has been in its differentiated offering, which led to building a loyal community. "In BuzzFeed, we've found unparalleled vision; a deep respect for our company culture, brands, and editorial independence; and a partner with business lines that will enable us to take Complex Networks to an entirely new level. With this move, we're joining another rocketship and just getting started,” he added.

Christian Baesler, President of Complex Networks added that BuzzFeed's unique approach to data, creativity and commerce opens up many new opportunities for Complex Networks' continued growth. “Just like us, they've been deliberate and unwavering in their path to success," said Baesler. "I'm grateful to Antoniello for his partnership and entrusting me to lead Complex Networks through this new chapter. I'm also excited to work with Peretti and the BuzzFeed teams to expand on the incredible momentum Complex Networks has experienced over the last two decades."

When the transaction closes, Complex Networks founder and CEO Rich Antoniello will become founder-at-large and shift into a two-year advisory role to BuzzFeed and CEO Jonah Peretti, providing counsel on new partnerships, acquisitions, and major strategic initiatives.

Baesler, currently president of Complex Networks, will assume the role of CEO. And Justin Killion, current GM and executive vice president for operations & content at Complex Networks, will become its president.

Since founded Complex Networks in 2002, the company has evolved from print to digital, launching a vertical ad network in 2007; from text to video, with the launch of Complex Video in 2012; and finally, to in-person experiences and events, with the launch of ComplexCon in 2016. Along the way, Complex Networks has achieved a diversified revenue model, reducing advertising to less than 50% by 2017-with the rest spanning across e-commerce, licensing, syndication, live and virtual events, and creative services.