🍗 Buzzfeed Sells Hot Ones

+ YouTube TV Raises Prices Again

December 13, 2024

Good afternoon! Former OpenAI researcher and whistleblower Suchir Balaji, 26, was found dead in his San Francisco apartment on November 26, with the cause of death ruled as suicide. Balaji, who worked on major projects like GPT-4 and ChatGPT, had publicly criticized OpenAI for its alleged misuse of copyrighted data, calling its practices harmful to the internet. He left the company earlier this year, citing concerns about the ethical implications of generative AI.

Balaji’s warnings weren’t quiet. In an October tweet, he called OpenAI’s fair-use defense “implausible,” highlighting how AI products can create direct substitutes for the data they’re trained on. His critiques came as OpenAI faces lawsuits from major publishers, including The New York Times, over copyright violations. Balaji’s death underscores the growing tension between rapid AI development and its ethical consequences.

MARKETS

*Stock data as of market close*

  • Markets barely moved on Friday, with the S&P 500 flat and the Nasdaq inching up 0.1%, fueled by Broadcom’s record-setting AI rally. The Dow slipped 0.2%, logging its seventh straight loss—the longest streak since 2020—as rising bond yields and inflation concerns took the shine off a solid year for stocks.

  • For the week, the S&P shed less than 1%, while tech managed to hold its ground. Investors are playing it cautious, with bond yields climbing and the end-of-year optimism facing a few bumps on the road.

STOCKS
Winners & Losers

What’s up 📈

  • Broadcom surged 24.43% after beating Q4 earnings estimates and posting AI revenue that tripled for the year, pushing its market cap past $1 trillion. CEO Hock Tan highlighted custom AI chip development as a key growth driver. ($AVGO)

  • SoundHound AI climbed 23.70% on continued investor enthusiasm, pushing its YTD gains over 713%. ($SOUN)

  • Archer Aviation soared 17.02% after Cathie Wood’s ARK Invest purchased 5.1 million shares of the eVTOL aircraft maker. ($ACHR)

  • RH rose 16.95% after delivering a Q3 profit and raising its full-year outlook. The luxury retailer credited strong demand despite the housing market slowdown. ($RH)

  • TaskUs gained 15.60% on a Morgan Stanley upgrade to "overweight," citing strong margins and AI potential. ($TASK)

  • Upstart Holdings advanced 9.57% after Needham upgraded the AI-powered lending platform to "buy," praising its improved funding balance. ($UPST)

  • Tesla climbed 4.34% after reports that President-elect Trump may end car-crash reporting requirements disliked by CEO Elon Musk. ($TSLA)

What’s down 📉

  • Under Armour dropped 8.13% following an underwhelming investor day presentation. Morgan Stanley maintained its "underweight" rating. ($UA)

  • Super Micro Computer fell 3.90% amid concerns about its removal from the Nasdaq 100. ($SMCI)

  • Nvidia slipped 2.25%, bucking the enthusiasm around Broadcom’s AI performance. ($NVDA)

  • Salesforce edged down 1.00%, while ServiceNow fell 2.40%, after KeyBanc issued mixed outlooks for enterprise software stocks. ($CRM, $NOW)

MEDIA
BuzzFeed’s Hot Sale: “Hot Ones” Gets a New Home

BuzzFeed just sold its crown jewel, First We Feast—home to the spicy celeb interview show Hot Ones—for $82.5 million. The buyer? A group led by Soros Fund Management, progressive media company Crooked Media, and YouTube duo Rhett and Link’s Mythical Entertainment. The deal marks a much-needed cash infusion for BuzzFeed as it battles mounting debt and declining valuation.

Spicy Profits, Scorching Debt

While Hot Ones brings in about $30 million annually with its 14 million YouTube subscribers, BuzzFeed’s financial struggles have been anything but mild. Once valued at $1.5 billion, the media company is now worth around $150 million. This sale slashes BuzzFeed’s $120 million debt to $30 million, leaving it with more cash than liabilities—a small win in a tough media landscape.

Sean Evans, the host whose calm demeanor has guided celebs through fiery sauces, will stay on as Chief Creative Officer, while founder Chris Schonberger takes over as CEO. Both retain stakes in First We Feast, signaling the brand’s continued independence.

BuzzFeed’s Comeback Recipe: AI?

With its debt cooling off, BuzzFeed CEO Jonah Peretti is turning up the heat on an AI-driven future. Peretti plans to lean into “tech-enabled services” and AI-powered content to reinvigorate the brand. But details remain vague, and questions linger: Will AI listicles bring the same viral charm that made BuzzFeed famous?

Media’s Chicken Wing Moment
BuzzFeed isn’t alone in downsizing to survive. Legacy media giants like Vice, Vox, and even Disney-backed brands have faced layoffs or filed for bankruptcy as digital advertising wanes. Meanwhile, Hot Ones and other next-gen content creators are proving that niche, viral-friendly media with strong branding can still sizzle.

The takeaway? In a media world where old models are burning out, spicy creativity may be the secret sauce to staying relevant.

NEWS
Market Movements

ENTERTAINMENT
YouTube TV Raises Prices Again

The streaming platform that once sold itself as a budget-friendly alternative to cable has inched closer to cable’s price tag. YouTube TV is hiking its monthly subscription to $83, effective January 13 for existing users, after already raising prices earlier this year.

From Underdog to Overpriced?

Launched in 2017 at just $35 a month, YouTube TV entered the scene as a disruptor, offering live TV without the cable hassle. But over time, rising costs—mainly for live sports and programming—have pushed the price higher: $40 in 2018, $65 in 2020, and now $83. While the platform still delivers over 100 channels and unlimited DVR storage, the price tag leaves cord-cutters wondering if the “savings” pitch holds up.

The Big Picture

YouTube TV isn’t alone in raising prices. Hulu + Live TV charges the same $83, but bundles Disney+, ESPN+, and Hulu content. Sling TV starts at $40 but requires add-ons to match YouTube TV’s channel lineup. Meanwhile, cable providers are quietly looking like a relative bargain for those who don’t mind the old-school setup.

Streaming’s Identity Crisis

When streaming began, it promised two things: affordability and simplicity. With subscription fees rivaling traditional cable bills and add-on costs for premium features like 4K streaming, the industry is testing consumers’ limits. For YouTube TV, the question becomes whether convenience—like easy cancellation and no contracts—is enough to justify its growing costs.

The takeaway? Cord-cutting isn’t dead, but it’s no longer the slam dunk it once was. Consumers now have to weigh whether the perks of streaming outweigh the price hikes—or if it’s time to reevaluate their subscription lineup.

NEWS
The Daily Rundown

  • 🛸 New Jersey Drone Mystery Deepens: Federal agencies, including the FBI and Department of Defense, are investigating sightings of large drones in New Jersey's skies. Speculations range from advanced technology to international espionage, though officials deny any immediate threats. The drones, spotted mainly at night, have baffled residents and prompted national security inquiries.

  • 🏛 Biden Issues Record Clemency Before Leaving Office: Outgoing President Joe Biden granted clemency to over 1,500 nonviolent offenders, marking the largest single-day use of presidential clemency powers in U.S. history. Biden also issued 39 pardons, fulfilling a campaign promise as his term concludes.

  • 🔵 CFPB limits overdraft fees: The Consumer Financial Protection Bureau announced a new rule capping overdraft fees at $5, set to take effect in October 2025. The move aims to curb excessive fees charged by banks, but financial institutions are expected to challenge the rule under President-elect Trump’s administration.

  • 🕊 Ceasefire hope in Gaza: Hamas reportedly agreed to two major Israeli demands for a ceasefire, including a list of hostages and a limited Israeli presence in Gaza. This raises optimism for a truce in the ongoing conflict.

  • 📉 Nasdaq’s diversity rule overturned: An appeals court struck down Nasdaq's diversity requirements for corporate boards, ruling they exceeded the SEC's authority. The decision is a blow to corporate diversity efforts.

  • 📱 Ev Williams launches Mozi: Twitter co-founder Ev Williams unveiled Mozi, an app designed to make in-person plans with friends. The app emphasizes real-world interactions and is a pivot from traditional social media platforms.

RESOURCES
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