BuzzFeed Sells First We Feast for $82.5 Million

(Reuters) – BuzzFeed announced on Thursday the sale of First We Feast, the creator of YouTube's popular talk show Hot Ones, to a consortium led by Soros Fund Management affiliate for $82.5 million. The struggling media company is facing a cash crunch.

Future of First We Feast

First We Feast will operate as an independent company under the leadership of its founder, Chris Schonberger, as CEO, and 'Hot Ones' host, Sean Evans, as Chief Creative Officer. It will continue producing Hot Ones and expanding its advertising partnerships.

BuzzFeed's Strategic Shift

BuzzFeed is shifting its focus to high-margin, tech-enabled revenue streams, including programmatic advertising and affiliate commerce, as it grapples with declining revenue from digital advertising. Advertisers are increasingly favoring social media platforms like TikTok and Meta Platforms' Instagram.

BuzzFeed acquired First We Feast in 2021 for $198 million in cash and equity.

Rise of 'Hot Ones'

Hot Ones has gained immense popularity, with celebrity guests sampling increasingly spicy chicken wings while being interviewed by Evans. Guests have included Conan O'Brien, Margot Robbie, and Hugh Jackman, with episodes attracting tens of millions of views.

Financial Overview

BuzzFeed reported reducing over $150 million in debt since December 31, 2023, and anticipates fourth-quarter revenue between $54 million and $58 million, excluding contributions from First We Feast. The company recorded $64.3 million in revenue in its latest quarterly report.