BuzzFeed sells ‘Hot Ones’ creator for $82.5 million to group led by Soros affiliate

(Reuters) – BuzzFeed said on Thursday it had sold First We Feast, creator of the popular YouTube talk show “Hot Ones,” to a group led by affiliate Soros Fund Management for $82.5 million, while the media company in distress they face a cash crunch.

First We Feast will become an independent company led by founder Chris Schonberger as CEO and “Hot Ones” host Sean Evans as creative director, while continuing to produce “Hot Ones” and expand advertising partnerships .

BuzzFeed aims to shift its focus to high-margin, technology-enabled revenue streams such as programmatic advertising and affiliate commerce.

The company is facing a cash crunch as digital advertisers increasingly prefer social media platforms like TikTok and Instagram to Meta Platforms.

BuzzFeed acquired First We Feast in 2021 as part of $198 million in cash and 2.5 million adjusted stock splits.

“Hot Ones” has become one of the most popular talk shows on the Internet, featuring celebrity guests eating increasingly spicy chicken wings while being interviewed by Evans.

The show has hosted a diverse range of guests, from talk show host Conan O’Brien to actors Margot Robbie and Hugh Jackman, with its episodes typically garnering tens of millions of views.

BuzzFeed also said it has reduced debt by more than $150 million as of Dec. 31, 2023, and expects fourth-quarter revenue to be between $54 million and $58 million, excluding expected contributions from First We Feast.

It reported revenue of $64.3 million in its most recent quarterly report.

(Reporting by Harshita Mary Varghese and Deborah Sophia in Bengaluru; Editing by Tasim Zahid)