BuzzFeed sells 'Hot Ones' creator for $82.5 mln to group led by Soros-affiliate

BuzzFeed

12/12/2024 15:54

Dec 12 (Reuters) - BuzzFeed  BZFD.O  said on Thursday it
has sold First We Feast, creator of YouTube's popular talk show
'Hot Ones', to a group led by Soros Fund Management affiliate
for $82.5 million, as the struggling media company faces a cash
crunch.
        First We Feast will become an independent company led by
founder Chris Schonberger as chief executive and 'Hot Ones' host
Sean Evans as chief creative officer, while continuing to
produce 'Hot Ones' and expand advertising partnerships.
  
    BuzzFeed aims to shift focus to high-margin, tech-enabled
revenue streams like programmatic advertising and affiliate
commerce. 
    The company has been grappling with a cash crunch as digital
advertisers increasingly favor social media platforms such as
TikTok and Meta Platforms'  META.O  Instagram.
    BuzzFeed had acquired First We Feast in 2021 as part of its
$198 million in cash and 2.5 million split-adjusted shares of
equity.
    'Hot Ones' has become one of the internet's most popular
talk shows, 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 that it has reduced more than $150
million of debt since Dec. 31, 2023 and expects fourth quarter
revenue to be in the range of $54 million to $58 million
excluding expected contributions from First We Feast. 
    It reported a 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)
 ((HarshitaMary.Varghese@thomsonreuters.com;))