Shares of BuzzFeed Inc. experienced a significant rise early Wednesday following an announcement that former U.S. presidential candidate Vivek Ramaswamy has acquired a stake in the online media company and seeks to initiate discussions with its board. Ramaswamy, who ended his political campaign in January and subsequently endorsed Donald Trump, has taken a 7.7 percent stake in BuzzFeed valued at approximately $6.81 million.
The newly acquired position catapults Ramaswamy to the fourth largest shareholder in BuzzFeed, behind major investors such as Comcast, NEA Management, and Hearst Communications. These entities had previously invested in the company when its valuation was significantly higher.
In a filing with the Securities and Exchange Commission, Ramaswamy indicated his intent to “engage in a dialogue with board or management about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy.” Following this disclosure, BuzzFeed shares surged by as much as 55 percent to $3.94 in premarket trading in New York, marking the most substantial one-day gain since February.
BuzzFeed, once well-known for publishing the fake Russiagate dossier on Donald Trump, recently refocused on generating online quizzes, listicles, and AI-generated pop culture content. The company has been struggling in recent years due to a decline in internet advertising revenue, leading to the elimination of its news division last year amid broader layoffs.
Ramaswamy, the founder of Roivant Sciences and co-founder of Strive Asset Management, stepped away from the asset management firm last year to concentrate on his presidential bid. He has since indicated that he does not plan to return to the firm, suggesting his new focus might be transitioning into the media industry.