BuzzFeed mentioned on Wednesday that it was promoting Advanced — a media start-up recognized for its protection of streetwear and popular culture — at a big low cost from its buy worth.
The client is Ntwrk, an e-commerce firm backed by LiveNation Leisure and Predominant Road Advisors, which is paying $108.6 million for the corporate. It is usually paying BuzzFeed $5.7 million to cowl severance bills of Advanced workers whom BuzzFeed is shedding, together with different prices.
BuzzFeed mentioned it was shedding 16 p.c of its remaining work power, a transfer it expects will save the corporate $23 million yearly. BuzzFeed just isn’t promoting First We Feast, the web model related to Advanced behind the favored “Sizzling Ones” interview sequence about scorching wings.
Jonah Peretti, BuzzFeed’s co-founder and chief government, mentioned in an announcement that promoting Advanced was “an essential strategic step” for the corporate.
“The modifications we introduced at the moment will allow an thrilling subsequent stage for our firm,” he mentioned.
BuzzFeed, which has suffered a steep low cost in its valuation because it went public in 2021, is promoting Advanced to repay greater than $60 million in debt. BuzzFeed mentioned in a monetary submitting that it had $150 million in debt due in 2026 and an extra $33.8 million from a line of credit score.
The sale of Advanced, which generated greater than $55 million of income final 12 months, is one thing of an oddity for Wall Road: It’s being bought for greater than the market capitalization of its proprietor, BuzzFeed, which is about $31 million.
BuzzFeed acquired Advanced in 2021 for about $294 million in money and inventory.
Aaron Levant, who will likely be Advanced’s new chief government, mentioned in an announcement that the deal would create “the definitive international content material, commerce and experiential platform of convergence tradition.”
