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Good news for BuzzFeed: It no longer has a huge debt problem looming over its head.
Slightly less good news for BuzzFeed: Solving the debt problem means the company needed to sell one of its buzziest assets — First We Feast, the production company that owns the "Hot Ones" interview show.
And now Hot Ones — the show where celebrities answer questions while eating increasingly spicy chicken wings — is going to be owned by … investor George Soros and his family.
There's a bit going on here. We can break it down in a minute. But the big picture is that BuzzFeed, once considered a world-beating digital publisher, has staved off a potential extinction event (and, for what it's worth, has likely extinguished a threat posed by investor and political player Vivek Ramaswamy). And in addition, George Soros has added another asset to an interesting collection of media investments he has assembled in the past few years.
OK. Here are the details: As I've noted before, BuzzFeed was on the hook for $124 million in debt and interest payments and was facing the prospect of having to pay it back this month.
But now BuzzFeed has sold First We Feast/Hot Ones to what it's calling a consortium "led by an affiliate of Soros Fund Management LLC" for $82.5 million in cash. Then it took the proceeds from that sale, threw in some cash it already had on hand, and paid back some $90 million of its debt obligations. BuzzFeed says it has $30 million in debt remaining, and that money is due in a year.
"BuzzFeed says its remaining businesses — BuzzFeed, the pop culture site best known for listicles, quizzes, and celebrity news; Huffington Post, the left-leaning news site; and Tasty, its food vertical — will power the company in the future, along with what CEO Jonah Peretti calls "new AI-powered interactive experiences."
First We Feast, meanwhile, says it will now operate as a standalone company. It says the deal and its new ownership structure will let it "fuel existing and new content franchises" and fund "future partnerships and acquisitions with other creators." A press release from the company says "Hot Ones" host Sean Evans is one of the investors in the new company, which suggests he's going to be sticking around for a while.
And while it might seem weird for Soros, who is worth a reported $7.2 billion and whose funding of liberal causes has made him a bogeyman for some US conservatives, to own a celebrity interview show, it's not a total shocker, for a couple of reasons.
For starters, Soros' empire — now run by his son Alex — has been making movies into media over the last few years. In 2022, it acquired a minority stake in Crooked Media, the podcast company best known for its "Pod Save America" show. And earlier this year, Soros acquired a controlling stake in Audacy, a bankrupt radio company with more than 200 stations in the US — a deal that incensed some Republicans.
There's also some connective tissue between Soros and BuzzFeed at play here via media executive Michael Del Nin. Back in 2021, Del Nin put together the deal that allowed BuzzFeed to go public, and he was set to become one of BuzzFeed's top executives in 2022. Instead, Del Nin went to Soros, where he leads the investment company's media unit.
The deal also means that BuzzFeed has reduced its risk that Ramaswamy, an investor and soon-to-be DOGE cochair advising the next Trump administration, will have meaningful influence in its future.
Earlier this year, Ramaswamy bought up a 9% stake in BuzzFeed and told Peretti he should bring a group of conservative media types onto BuzzFeed's board and turn BuzzFeed into a Twitter-style platform. Then he suggested that when BuzzFeed's debt came due this month, the company would be unable to pay it back and that somehow Ramaswamy would end up controlling the company. That doesn't seem like an option anymore.
