Former Republican primary candidate and entrepreneur Vivek Ramaswamy has purchased a 7.7 percent stake in Buzzfeed, according to a filing with the Securities and Exchange Commission (SEC) late Tuesday.
Buzzfeed shares shot up by over 50 percent before markets opened Wednesday due to the news. Ramaswamy stated in his filing that he believes Buzzfeed is undervalued, and is trying to have a conversation with its board and management.
“Stay tuned,” Ramaswamy told CNBC, after saying that he is seeking a “shift” in the company’s strategy.
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Ramaswamy’s Strive Asset Management notably pushes for companies to reject “woke” political signaling and the environmental, social and governance (ESG) movement. Company ought to “do whatever allows them to be most successful over the long run without regard to political, social, cultural or environmental agendas,” Ramaswamy said in 2023.
Buzzfeed went public in 2021 and struggled to make profit ever since. It began cutting jobs in December 2022 due to a financial downturn brought on by advertising pulling back over rising costs. “In order for BuzzFeed to weather an economic downturn that I believe will extend well into 2023, we must adapt, invest in our strategy to serve our audience best, and readjust our cost structure,” said co-founder and CEO Jonah Peretti.
Valuetainment previously reported that BuzzFeed News completely shut down, as was first announced in April 2023.
Again citing the downturn in digital advertising, Peretti said he had “learned from these mistakes, and the team moving forward has learned from them as well […] We know that the changes and improvements we are making today are necessary steps to building a better future.”
Peretti had told CNBC in April 2023 that it was his task to “set us up with a better future.” Buzzfeed stock has fallen 94 percent since his ascension.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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