(Reuters) - BuzzFeed 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 (NASDAQ:META)' 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.