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Buzzfeed shares soar as Vivek Ramaswamy purchases 7.7 percent stake: reports
The Indian-American politician reportedly said in a SEC filing on May.21 that he believed Buzzfeed's stock was undervalued.
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Vivek Ramaswamy and his family in a photo posted on X on May.19. / X/@vivekgramaswamy
Indian-American entrepreneur and former Republican presidential candidate Vivek Ramaswamy on May.21 purchased a 7.7 percent stake in digital publishing company Buzzfeed, as per reports.
Following the development, Buzzfeed's shares surged by more than 50 percent before US markets commenced business on May.22.
According to reports, Ramaswamy said in a filing with the US Securities and Exchange Commission that he believed Buzzfeed's stock was undervalued. The Indian-American now owns a 7.7 percent stake in the company, making him its fourth largest shareholder behind Comcast, NEA Management and Hearst Communications.
In the filing, Ramaswamy reportedly said he wishes to discuss with the company’s management “numerous operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy”.
Buzzfeed has struggled to generate sales revenue since it went public in 2021. In 2022, the company even announced job cuts citing a poor digital advertising environment.
The company's Pulitzer Prize-winning outlet Buzzfeed News was shut down in 2023 and CEO Jonah Peretti said in a memo to employees that layoffs could also be expected in other business, content, tech and administrative teams.
In the first quarter of 2024, Buzzfeed reported a loss of $35.7 million.
Biotech entrepreneur Ramaswamy ended his bid for the Republican presidential nomination on Jan.15, after failing to get the support of Iowa voters in the first contest of the 2024 election cycle. As he ended his race, Ramaswamy endorsed Donald Trump.
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