PYMNTS-MonitorEdge-May-2024

Report: BuzzFeed Looking to Sell Complex Networks Websites for $150 Million

BuzzFeed is reportedly looking to sell Complex Networks for 50 cents on the dollar.

The digital media organization purchased the group of websites for $300 million two years ago and is now looking to sell them for $150 million, Seeking Alpha reported Wednesday (July 5), citing The Information.

While selling a group of assets included in Complex Networks, BuzzFeed CEO Jonah Peretti aims to keep its food site, First We Feast, which is one of the group’s most valuable assets, according to the report.

The seller has received interest from several potential buyers, the report said.

BuzzFeed did not immediately reply to PYMNTS’ request for comment.

The digital media organization confirmed in April media reports that it is shutting down its news operation and eliminating 180 jobs.

These moves by BuzzFeed were caused by a slowdown in advertising, a decline in revenue and an inability to sustain a profit despite previous headcount reductions, according to an April 20 Bloomberg report that was confirmed at the time by a BuzzFeed spokesperson.

Peretti told staff in a memo: “We are moving forward only with the parts of the business that have demonstrated their ability to add to the bottom line. That means we will no longer be supporting BuzzFeed News as a standalone operation,” according to the report.

In other recent news around advertising, it was reported in June that out-of-home (OOH) marketing mediums are experiencing a surge due to a realization that online channels such as Snap and Facebook appear to be less effective than desired.

Prior to the pandemic, OOH advertisements was popular, but it has declined in recent years as more people shifted towards online shopping or opted to stay at home, PYMNTS reported June 6.

However, there is now a resurgence in the OOH sector, with brands exploring new approaches to capture the attention of audiences and convey diverse messages.

At the same time, major tech companies such as Amazon and Meta have experienced a boost in advertising revenue, suggesting a possible recovery of the digital advertising industry.

Their customers — brands and retailers — are balancing their desire for new ways to attract and retain customers with the rising cost of digital advertising.

PYMNTS-MonitorEdge-May-2024