BuzzFeed Inc. (NASDAQ:BZFD) shares soared early Wednesday after entrepreneur and former US presidential candidate Vivek Ramaswamy reported a stake in the online media company and requested talks with the board.
Ramaswamy, who ended his candidacy in January and subsequently supported Donald Trump, has acquired a 7.7% stake in BuzzFeed, valued at approximately $6.81 million based on Tuesday’s closing share price. This purchase makes Ramaswamy the fourth-largest shareholder in BuzzFeed, following Comcast Corp. (NASDAQ:CMCSA), NEA Management Co., and Hearst Communications Inc.
The stock surged as much as 55% to $3.94 in premarket trading in New York. If the gain holds, it would mark the biggest increase since February on a closing basis.
In a filing with the Securities and Exchange Commission, Ramaswamy expressed his intent to “engage in a dialogue with the board or management about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy.”
Ramaswamy founded pharmaceutical company Roivant Sciences Ltd. (NASDAQ:ROIV) in 2014 and co-founded Strive Asset Management in 2022. He stepped away from the asset management firm last year to focus on his presidential run and has stated he isn’t returning. Ramaswamy’s position in BuzzFeed represents his latest move since ending his political campaign.
BuzzFeed, renowned for its online quizzes, lists of “bests,” and pop culture articles, has faced challenges in recent years due to cutbacks in internet advertising. Last year, the company shut down its news division amid broader layoffs.
Featured Image: Freepik
