BuzzFeed Shares More Than Double Following $108.6M Complex Sale, Plans To Layoff 16% Staff
Portfolio Pulse from Benzinga Neuro
BuzzFeed Inc (NASDAQ:BZFD) shares surged 137.42% to $0.52 after-hours following the announcement of selling Complex Networks to NTWRK for $108.6 million, a significant drop from its 2021 purchase price of nearly $300 million. The sale is part of BuzzFeed's strategic restructuring, which includes a 16% workforce reduction to enhance profitability and agility. This move reflects BuzzFeed's focus on its core brands and the broader financial challenges within the digital media industry.
February 22, 2024 | 8:45 am
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BuzzFeed Inc's share price jumped 137.42% after selling Complex Networks for $108.6 million and announcing a 16% workforce reduction as part of a strategic restructuring.
The significant rise in BuzzFeed's share price reflects investor optimism about the company's strategic restructuring and focus on profitability. The sale of Complex Networks, despite being at a lower price than its purchase, along with the workforce reduction, is seen as a positive move towards making BuzzFeed more agile and sustainable. However, the long-term impact will depend on the company's ability to capitalize on its core brands and navigate the challenging digital media landscape.
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