In a move that has confirmed the growth of internet video, Hearst has partnered with Verizon Wireless to purchase Complex Media. The video-first lifestyle website will continue to operate as an independent body, with both owners sharing 50 per cent of the stakes.
The Wall Street Journal reports the deal was brokered for between $US250 million and $US300 million. The terms will see Complex Media CEO and co-founder Rich Antoniello continue to lead the company, which focuses on pop culture trends and general entertainment, garnering 50 million unique visitors monthly.
Antoniello comments on the sale to TechCrunch: “This is a tremendous opportunity for us to have a very good initial return for our shareholders, but now it’s really about the second act. We could not have chosen better strategic partners.”
Hearst entertainment and syndication co-president Neeraj Khemlani says the move is a strategic one that allows for both the publishing giant and Verizon to get on board the rising video-first trend. “Part of this is a feeling that history is repeating itself here and every time there is a technological change, new brands are created for new generations. We believe we’re in the early days of internet video channels.”
Verizon’s senior vice president of consumer product and marketing Brian Angiolet agrees: “The decision to acquire Complex is certainly a continuation of our media strategy, which is focused on [the] disruption occurring in digital media and content distribution, and involves building a portfolio of the emerging digital brands of the future for the millennial and Gen-Z audience.”
