Vivek Ramaswamy, a former Republican presidential candidate and biotech entrepreneur, has acquired a minority stake in Buzzfeed, a digital publishing company that shut down its media outlet last year.
The news of Ramaswamy’s 7.7% stake in Buzzfeed, disclosed in a Securities and Exchange Commission filing late Tuesday, caused the company’s shares to soar more than 50% before the market opened on Wednesday.
In the filing, Ramaswamy expressed his belief that Buzzfeed’s stock is undervalued and stated his intention to engage in discussions with the company’s board and management. This move comes as Buzzfeed has been struggling to boost sales since going public in 2021.
The company faced significant challenges in 2022, with job cuts initiated due to a poor digital advertising environment. In early 2023, Buzzfeed announced the closure of its Pulitzer Prize-winning digital media outlet, BuzzFeed News. Jonah Peretti, the co-founder and CEO of Buzzfeed’s corporate parent, informed staff that layoffs would also affect the business, content, tech, and administrative teams.
Buzzfeed’s financial struggles continued into 2023, with the company reporting a first-quarter loss of $35.7 million, or 72 cents per share, on revenue of $44.8 million. The company experienced a 22% decline in advertising revenue and a 19% drop in content revenue, with projections indicating a worsening revenue situation.
Ramaswamy, the son of Indian immigrants, made his fortune at the intersection of hedge funds and pharmaceutical research after graduating from Harvard University and Yale Law School. He entered politics at the highest level, running for the 2024 Republican presidential nomination. However, he suspended his bid in January and endorsed former President Donald Trump after finishing a distant fourth in Iowa’s leadoff caucuses.
Following the news of Ramaswamy’s stake in Buzzfeed, the company’s shares, traded on the New York City stock exchange, rose 59% to approximately $4 in early Wednesday trading.
The Associated Press contributed to this article.