Vivek Ramaswamy, the tech entrepreneur and former Republican presidential hopeful, has acquired a 7.7% activist stake in BuzzFeed in an attempt to “shift” the struggling media company’s strategy.
Ramaswamy acquired 2,723,927 shares in BuzzFeed in a series of purchases from March 14 through May 21, according to an SEC filing Tuesday. Shares of the company skyrocketed more than 50% in premarket trading on Wednesday.
The entrepreneur “believes the securities of [BuzzFeed] are undervalued and represent an attractive investment opportunity,” according to the filing.
“The Reporting Person will seek to engage in a dialogue with the Issuer’s Board of Directors (the ‘Board’) and/or management about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the Company’s strategy,” the filing noted.
“BuzzFeed is purposely structured to protect its editorial integrity,” a BuzzFeed spokesperson said in a statement to TheWrap. “We are always open to hearing ideas from our shareholders.”
BuzzFeed has struggled significantly since it went public via SPAC in 2021. In April 2023, the media company announced that it would be shuttering its news division, laying off around 180 staffers across the company. Then in February, BuzzFeed sold Complex to Ntwrk for $108.6 million, while laying off more staffers.
Earlier this month, Buzzfeed reported a first-quarter loss of $35.7 million, or 72 cents per share, on revenue of $44.8 million.
Ramaswamy, 38, suspended his campaign for the 2024 Republican presidential nomination in January, endorsing former president Donald Trump shortly after. The entrepreneur amassed his wealth in the intersection of finance and pharmaceutical research.
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