LeBron James’ media and entertainment company, SpringHill Co., is exploring buying BuzzFeed’s Complex Networks, according to two sources familiar with the situation. There has been no formal offer from SpringHill and there is no guarantee that a deal will get done as BuzzFeed CEO Jonah Peretti has not seemed receptive to the idea. SpringHill has internally discussed offering around $100 million for Complex, a significant discount from the $300 million in cash and equity that BuzzFeed paid in 2021 for the hip hop and sneaker culture-focused business.
BuzzFeed went public in December 2021, and since then its market cap has gone below $100 million as its stock price dropped, layoffs happened and BuzzFeed News shut down. If a deal is done, it would help SpringHill, as they have goals of acquiring and developing IP. Complex builds long-form videos with hosts and it is well-known for its video series and live events. With December layoffs, the team that is crucial to maintaining the quality and consistency of the videos was cut and this is when SpringHill began exploring the idea of buying Complex.
SpringHill Co. was created by Maverick Carter and LeBron James which raised an investment from RedBird Capital Partners and others in 2021 and was valued at $725 million. The 140-person team is centered on their mission to amplify different voices and storytellers and so far has partnered with Naomi Osaka’s company to provide production and development resources. SpringHill also moved their series “The Shop” which features Barack Obama, Odell Beckham Jr., and Mary J. Blige, to YouTube from HBO to reach a bigger audience.
On the other hand, there could be other parties interested in acquiring parts of BuzzFeed like their HuffPost and Tasty food vertical which includes licensed cooking products. Furthermore, if BuzzFeed is to sell it would generate cash needed to fuel its operations and also boost its stock price. Selling Complex could be seen as an admission that the original buy of the company hasn’t paid off and that Complex may have more value than BuzzFeed. CEO Peretti has said that he will continue to turn BuzzFeed around but has not mentioned the idea of divesting any parts of the company. BuzzFeed is scheduled to report first-quarter financial results on May 9 and will hold an investor day on May 11.
