BuzzFeed has sold First We Feast, the production company behind the wildly popular YouTube show Hot Ones, to a consortium led by an affiliate of Soros Fund Management LLC for $82.5 million in an all-cash deal. The sale marks a significant step in BuzzFeed's strategic transformation into a media company focused on leveraging the ongoing AI revolution.

The deal comes after months of speculation about how BuzzFeed would address its $123.5 million debt and interest payments. The sale of First We Feast, which BuzzFeed acquired in 2021 as part of its purchase of rival media outfit Complex, will provide a much-needed influx of capital to help the company pay off its debt. According to BuzzFeed, the sale will leave the company with more cash on hand than debt.

In a press release, BuzzFeed CEO Jonah Peretti stated that the sale "marks an important step in BuzzFeed, Inc.'s strategic transformation into a media company positioned to fully benefit from the ongoing AI revolution." Peretti added that the company will continue to invest in its most scalable and tech-enabled services, launching new AI-powered interactive experiences and delivering for its loyal audience and business partners.

The consortium of investors behind the purchase includes First We Feast founder Chris Schonberger and Hot Ones host Sean Evans. The deal is seen as a strategic move by BuzzFeed to refocus on its core business and pay off its debt, which had been a subject of concern for investors and analysts alike.

Notably, the sale of First We Feast comes just months after BuzzFeed sold Complex to Ntwrk for $108.6 million. While BuzzFeed had initially retained control of First We Feast, the company has now opted to offload the production company to focus on its core business.

The deal is also a rebuke to failed Republican presidential candidate Vivek Ramaswamy, who had recently purchased a 9% stake in BuzzFeed and claimed that the company would be unable to pay off its debt. Ramaswamy had even suggested that he could potentially end up running the company. However, with the sale of First We Feast, BuzzFeed has demonstrated its ability to address its debt concerns and chart a path forward.

The sale of First We Feast is a significant development in the ongoing evolution of the media landscape. As companies like BuzzFeed continue to adapt to changing consumer habits and technological advancements, strategic deals like this one will play an increasingly important role in shaping the future of the industry.

With the sale of First We Feast, BuzzFeed has taken a crucial step towards securing its financial future and positioning itself for success in the AI-driven media landscape. As the company continues to invest in its most scalable and tech-enabled services, it will be worth watching to see how this deal impacts BuzzFeed's long-term prospects.