BuzzFeed sold ‘Hot Ones’ for $82M 🌶

BuzzFeed sold ‘Hot Ones’ for $82M 🌶

Hey there! 👋

The YouTube channel 'Hot Ones' - you know, that show where celebrities eat increasingly spicy wings while answering deep questions - just got sold for a whopping $82.5M! BuzzFeed made the decision to sell First We Feast (the company behind Hot Ones).

Let’s dive into what happened and how law firms could be involved.

Don't have time for the full scoop? No worries, we've got you covered with a quick summary: click here

Who bought Hot Ones? 🤔

First We Feast was originally a food blog before it evolved into a media brand. An impressive group led by Sean Evans (the show's famous host) and Chris Schonberger (First We Feast's founder) purchased the company, backed by Soros Fund Management, Crooked Media, and Mythical Entertainment (Rhett & Link's company).

Why did BuzzFeed sell? 💰

BuzzFeed has been dealing with some serious financial challenges. They originally acquired First We Feast as part of a $198 million deal for Complex Networks in 2021 but found themselves struggling with over $120 million in debt. The sale allows BuzzFeed to reduce the debt that it has taken on. Plus, it lets them pivot towards AI - which seems to be where they see their future growth.

What makes Hot Ones so valuable? 🌶

The sale promises an exciting future for Hot Ones. With over 14 million subscribers and episodes featuring some of the world’s most popular celebrities, like Ariana Grande and Gordon Ramsay, Hot Ones has positioned itself as a staple of modern pop culture. Evans is excited to continue growing the brand in collaboration with his new partners and investors.

How would a law firm be involved? ⚖️

  • Law firms likely structured the $82.5M deal between multiple high-profile investors, potentially handling shareholder agreements, voting rights, and board representation between Sean Evans, Chris Schonberger, Soros Fund Management, Crooked Media, and Mythical Entertainment.

  • Law firms would have needed to conduct due diligence by reviewing First We Feast's existing contracts, including talent agreements, production contracts, and YouTube platform agreements. This likely included examining sponsor relationships and merchandising deals for any change-of-control provisions.

  • M&A teams need to consider multiple jurisdictions while structuring this deal - it's not just about buying a YouTube channel, it's about acquiring a whole media ecosystem.

  • Given the significant value of the brand, intellectual property lawyers may have been involved in ensuring smooth trademark transfer and protecting existing IP licenses.

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I hope you enjoyed this article. See you next week! 👋

Written by Sana Feroz