BuzzFeed has a new activist investor: Former GOP presidential candidate Vivek Ramaswamy
Former Republican presidential candidate and biotech entrepreneur Vivek Ramaswamy has bought a minority stake in BuzzFeed, the digital publishing company that shuttered its media outlet last year.
The company’s shares soared on Wednesday.
Ramaswamy bought a 7.7% stake in BuzzFeed, according to a filing with the Securities and Exchange Commission late Tuesday.
Ramaswamy said in the filing that he believes BuzzFeed shares are undervalued. He’s looking to talk to the company’s board and management.
BuzzFeed has struggled to boost sales since it went public in 2021. At the end of 2022 Job cuts are starting to take place The company cited a poor digital advertising environment, then announced early last year that it would shutter its Pulitzer Prize-winning digital media agency. BuzzFeed News.
Parent company co-founder and CEO Jonah Peretti said in a memo to employees at the time that in addition to the news department, layoffs would take place in the business, content and , technology and administration.
Earlier this month, BuzzFeed reported a first-quarter loss of $35.7 million, or 72 cents per share, on revenue of $44.8 million. Advertising revenue is down 22%, while content revenue is down 19%, and the company is predicting a worsening revenue situation.
Ramaswamy suspended the bidding 2024 Republican presidential nomination in January and was authenticated former President Donald Trump after finishing a distant fourth in the The caucus leads in Iowa.
The son of Indian immigrants, Ramaswamy entered politics at the highest level after making hundreds of millions of dollars from hedge funds and pharmaceutical research, a career he had planned for. and construction upon graduating from Harvard University and then Yale Law School.
Shares of BuzzFeed Inc., based in New York City, rose 22% to about $3.05 early Wednesday.
