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LeBron James' company is looking into buying Complex from BuzzFeed

LeBron James
LeBron James. Ethan Miller/Getty Images

  • LeBron James and Maverick Carter's SpringHill has had conversations about buying BuzzFeed's Complex Networks, sources said.
  • SpringHill raised funds valuing it at $725 million and has been seeking to acquire and develop IP.
  • No formal offer has been made by SpringHill, and there's no guarantee a deal will get done.
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SpringHill Co., LeBron James and Maverick Carter's media and entertainment venture, has explored buying troubled BuzzFeed's Complex Networks, two sources familiar with the situation said.

No formal offer has been made by SpringHill, and there's no guarantee a deal will get done. One of the sources familiar said BuzzFeed CEO Jonah Peretti has not been receptive to the idea. BuzzFeed declined to comment.

SpringHill has internally discussed offering around $100 million for Complex, the people said. That would be a significant discount from the $300 million in cash and equity that BuzzFeed laid out in 2021 to acquire Complex, the hip hop- and sneaker culture-focused platform that's best known for its video series and live events. Peretti conceded the integration of the two companies has had challenges, saying in a recent staff memo that it "should have been executed faster and better."

"There's ongoing conversations" with Peretti and others, one of the sources familiar with the SpringHill situation said. "But it has not progressed to a place where there's a formal negotiation."

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It's also possible another buyer could emerge. Two separate sources close to BuzzFeed told Insider that several other parties are exploring acquiring its properties. In addition to Complex Networks, BuzzFeed has HuffPost; food vertical Tasty, which includes licensed cooking products; as well as video series like travel-themed "Bring Me."

Since the acquisition of Complex, BuzzFeed went public in December 2021 via a special-purpose acquisition company, and the entire company's market cap has fallen below $100 million as its stock price has plunged, it's had a series of layoffs, and shuttered BuzzFeed News.

A deal for Complex could help SpringHill toward its goal of acquiring and developing IP. Complex built long-form, host-driven video series like "Hot Ones" and "Sneaker Shopping" into high-profile brands in their own right. But planned funding at BuzzFeed to expand Complex's brands in 2022 never materialized, while December layoffs cut Complex video staff, a team company insiders said was crucial to maintaining the quality and consistency of their video series.

SpringHill Co. is a rollup including SpringHill Entertainment, which Carter founded with LeBron James, his childhood friend. It raised an investment from RedBird Capital Partners and others in 2021 that valued it at $725 million. Carter told Insider in 2021 that the investment gave the 140-person SpringHill capital to build out its production capabilities, pursue M&A opportunities and invest in creators — all with a mission to amplify a variety of voices and storytellers. 

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In 2022, SpringHill partnered with Naomi Osaka's company to provide production and development resources. It also moved "The Shop," its unscripted series featuring candid talk in barber shops (guests have included former President Barack Obama, Odell Beckham Jr., and Mary J. Blige) to YouTube from HBO to reach a bigger audience.

Selling parts of BuzzFeed would generate cash needed to fuel its operations in a tough advertising market and boost its stock price. Selling Complex also could be seen as an admission that the deal to acquire it — part of a strategy to roll up digital media companies including HuffPost to offer advertisers more audience scale — hasn't paid off. Some observers argue Complex has more value than BuzzFeed, which to many has passed its prime. 

But Peretti, who controls the company, has given no indication he plans to divest any of it. Instead, he's said he plans to turn BuzzFeed around by using AI to scale its content creation and by expanding its video offerings using independent creators.

BuzzFeed is scheduled to report first-quarter financial results May 9 and hold an investor day May 11.

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Do you have a tip or information about this story to share? Contact Lucia Moses at lmoses@businessinsider.com or (917) 209-8549 on text/Signal using a non-work device.

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