Universal Music Group is set to acquire a stake in Complex, a media platform focused on youth culture. This move aligns UMG as a strategic partner with other investors like Goldman Sachs, Main Street Advisors, and Jimmy Iovine. The acquisition, led by live-video shopping platform NTWRK, will make NTWRK the official owner of Complex and its networks. This comes after Complex was previously sold to BuzzFeed for $294 million in November 2021. Now, NTWRK, backed by its consortium, is purchasing Complex for $108.6 million in cash. According to a press release from Universal Music Group, this acquisition aims to establish a new hub for superfan culture, shaping the future of commerce, digital media, and music.
UMG’s strategic partnership with Complex is anticipated to involve selling music-related superfan products directly to Complex’s audience using NTWRK’s technology. This strategy aligns with Sir Lucian Grainge’s objectives for UMG in 2024, focusing on strengthening the relationship between artists and fans through unique experiences and products.
NTWRK, founded in 2018 by Jamie Iovine, Gaston Dominguez-Letelier, and Aaron Levant, operates in the live-streaming US shopping industry, projected to reach $68 billion in sales by 2026. Levant, NTWRK’s CEO, will now also serve as CEO of Complex, effectively merging the two entities. Interscope Geffen A&M (IGA) and Capitol Music Group, both Universal labels, will be the first to leverage the superfan strategy of NTWRK/Complex, offering exclusive collaborations and experiences to passionate music fans.
Additionally, UMG’s partnership with Complex coincides with Warner Music Group’s plans to sell two of Complex’s competitors, Uproxx and HipHopDX. Warner is also discontinuing its owned media brands like IMGN and Interval Presents. Sony Music Group’s The Orchard retains ownership of media properties catering to niche music cultures.
In summary, UMG’s stake in Complex marks a strategic move to tap into superfan culture, aligning with industry trends and enhancing the connection between artists and their dedicated fan base.
