Former Republican presidential candidate Vivek Ramaswamy has made a significant move in the media industry, acquiring a stake in far-left media outlet BuzzFeed, causing a notable surge in the company’s shares.
Ramaswamy’s acquisition of a 7.7 percent stake and 2.7 million shares in BuzzFeed has propelled the struggling leftist media outlet’s shares up by 20%. The biotech entrepreneur, known for his stance against “woke” politics, hinted at further developments, stating, “Stay tuned.”
STOCK WATCH 🚨
Vivek Ramaswamy, the former Republican presidential candidate, has acquired a large stake in $BZFD in order to “shift its strategy”. His 7.7% stake in the media company is worth more than $2.7M. The stock is now +141% over 3 months and +27% today as a result. pic.twitter.com/kl1BjP1jJB
— Wall Street Alerts (@MarketAlerts_) May 22, 2024
The news of Ramaswamy’s investment saw BuzzFeed shares opening up by 55%, eventually settling at a 20% increase as of 10:25 a.m. ET, according to CNBC. The company had initially gone public via a special purpose acquisition company in 2021, an event met with a lukewarm reception, with shares plummeting by 94% since then.
A filing with the Securities and Exchange Commission in May revealed Ramaswamy’s belief in the undervaluation of BuzzFeed’s securities, deeming them an attractive investment opportunity. In addition to the stake acquisition, Ramaswamy aims to initiate discussions with BuzzFeed’s Board of Directors and management regarding potential operational and strategic enhancements to maximize shareholder value.
The filing outlines Ramaswamy’s intentions to propose various changes, including adjustments to the company’s operations, management, board composition, and strategic direction. BuzzFeed, known for its diverse content ranging from news to quizzes and games, underwent a strategic restructuring earlier this year, which included a workforce reduction of 16% to streamline expenses.
Ramaswamy’s investment strategy will be contingent upon multiple factors, including BuzzFeed’s financial performance, strategic direction, market conditions, and available investment opportunities.
Commenting on Ramaswamy’s move, a source close to him suggested that his acquisition in BuzzFeed, a prominent liberal media entity, could signal a commitment to fostering a platform for free speech. While the investment carries inherent equity risks, Ramaswamy stands to gain significant credibility if he succeeds in turning around BuzzFeed’s financial fortunes.
