BuzzFeed has taken a bold step forward by officially selling the highly popular First We Feast studio, the creative powerhouse behind the beloved YouTube series "Hot Ones," for $82.5 million. This all-cash deal marks a transformative moment not just for BuzzFeed, but also for the media and entertainment industry as it continues to adapt to changing consumer preferences and financial pressures.
First We Feast is renowned for its unique format of celebrity interviews featuring increasingly spicy chicken wings—a concept that's both entertaining and engaging. The show has attracted numerous high-profile guests including the likes of Gordon Ramsay, Billie Eilish, and Paul Mescal, amassing over 14 million subscribers on YouTube and garnering billions of views. This sale signals a significant opportunity for its new owners, which include Sean Evans—the show's host—and investors from Soros Fund Management, among others.
This strategic move arrives at a time when BuzzFeed is grappling with substantial financial challenges. The company had been burdened with approximately $124 million of debt, which, according to reports, was scheduled to come due shortly. Selling First We Feast allows BuzzFeed to significantly reduce its debt by nearly $89 million, leaving the company with improved cash flow and less financial pressure moving forward.
According to BuzzFeed founder and CEO Jonah Peretti, the sale is aligned with the company’s strategy to pivot away from lower-margin content and focus on high-margin, tech-enabled revenue streams. Peretti expressed optimism, stating, "The sale of First We Feast marks an important step in BuzzFeed’s strategic transformation to fully benefit from the AI revolution." By reducing reliance on traditional, human-driven content creation, BuzzFeed aims to leverage AI for enhanced content delivery and interaction.
Beyond just relieving financial pressure, this sale also churns the waters of digital media, showcasing the recognition of valuable content assets. The new consortium, which includes Mythical Entertainment—the creators of another popular YouTube entity, Rhett & Link—plans to expand the reach and brand presence of First We Feast. This independent studio aims to explore new content directions and possibly even live events, marking the dawning of what could be a new era for "Hot Ones. "
Sean Evans' continued involvement not only as the host but also as Chief Creative Officer ensures the show retains its unique flavor and style. Evans shares his excitement about the future and elaborates, "I’m excited to continue hosting ‘the show with hot questions and even hotter wings’ for years to come. The future is spicy, and I can’t wait to see what’s next.” This assurance of continuity is likely welcomed by its devoted fanbase who have embraced the distinctive blend of humor and heat featured on the show.
Analyzing the broader media trends, this sale reflects the shifting dynamics within the digital media space. Faced with declining advertising revenues and increased competition, media companies are now more inclined to explore mergers, acquisitions, and strategic partnerships. The growing interest of investment firms like Soros Fund Management, who see value in digital media properties, points to potential for thriving digital entertainment ecosystems.
While the deal secures the future for "Hot Ones," it also raises questions about the direction of BuzzFeed's content strategy. With digital companies increasingly leaning on technology to drive growth, the media giant has revealed its intent to focus on AI-driven models for content creation. Like many others, BuzzFeed seeks to adapt to changing times; this may involve producing more scalable and efficient content rather than relying heavily on traditional editorial methods. By creating content through AI, BuzzFeed hopes to maintain relevance among media audiences increasingly seeking streamlined and accessible formats.
Under the new ownership structure, First We Feast hinted at pushing the envelope of its offerings, potentially transforming how audiences interact with its brand. Chris Schonberger, the founder of First We Feast, has expressed enthusiasm about spearheading future innovations. He stated, "Our proven expertise in developing compelling formats allows us to expand on the brand’s momentum and supercharge our growth." This determination to innovate could open the door for content expansion beyond the YouTube platform.
Looking forward, the upcoming "Annual Hot Ones Holiday Extravaganza," set to launch on December 19, serves as both a celebration of the show’s history and a preview of what fans can expect moving forward. Speculations also suggest Season 26 will debut on January 23, 2025, featuring not only exciting new celebrity guests but special surprises to mark the show's 10th anniversary. These upcoming events will help cement "Hot Ones" as not just another YouTube series but as part of the broader pop culture conversation.
All signs suggest "Hot Ones" will continue to thrive under its new leadership. While BuzzFeed's sale of First We Feast is primarily driven by financial imperatives, it is also indicative of how digital content landscapes are constantly changing. With new ownership, innovative strategies, and Evans's oversight, "Hot Ones" seems prepared to spice things up even more, ensuring it retains its spot at the forefront of digital entertainment.
