News
Deal adds to U.S. telco’s growing portfolio of media, content assets.
Verizon and Hearst late on Monday went 50:50 on the acquisition of pop-culture portal Complex, the latest in a string of deals bolstering the U.S. telco’s content assets.
Founded as a print magazine, Complex has also built up an online presence providing news and features focused on various subjects such as film, TV, music, sport and fashion. It also serves as a portal to several sister Websites that cover subjects like food, skateboarding, and footwear. The content is pitched at a young, predominantly male audience.
"The decision to acquire Complex is certainly a continuation of our media strategy, which is focused on disruption that is 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," said Brian Angiolet, senior vice president of consumer product and marketing, in a statement.
"When we look at Complex and how well they’ve built audiences by championing the digital convergence of cultures for well over a decade, it pairs well with our strategic vision and current shifts in content consumption," he said.
As part of the deal, Complex has agreed to produce premium video content for distribution on Verizon’s go90 mobile video service and AOL.com.
"Complex’s smart, fresh content aims squarely at the ever elusive young male demo and drives unparalleled engagement with that audience across every social channel. Complex also represents the acceleration of Hearst’s growing partnership with Verizon, which has unparalleled ad, video and mobile technology, and an appetite to build together the digital video networks of the future," said Neeraj Khemlani, co-president of Hearst Entertainment and Syndication.
Financial terms were not disclosed; the deal is expected to close within the next two months.
Monday’s acquisition is one of several content-related deals Verizon has struck recently.
Earlier in April, the telco bought a 24.5% stake in online video maker AwesomenessTV. Hearst also owns a 24.5% stake in the company.
In March, Verizon and Hearst formed a joint venture, Verizon Hearst Media Partners, which will produce and distribute video content aimed at millennials. It is currently working on its first two channels: RatedRed.com and Seriously.TV.
Verizon also bought AOL in 2015 for US$4.4 billion, and it is also rumoured to be leading the race to acquire Yahoo.
