Former Republican presidential candidate Vivek Ramaswamy’s disclosure of a 7.7% stake in BuzzFeed (BZFD) has sent the embattled media giant’s stock soaring by as much as 83% in early trading on Wednesday. Ramaswamy, a biotech entrepreneur, believes that BuzzFeed shares are undervalued and sees an opportunity to push for changes at the company to maximize shareholder value.
BuzzFeed, once considered a crown jewel in the digital media space, has faced challenges since going public via a SPAC in 2021, with its stock plummeting more than 90% since then. The news of Ramaswamy’s stake has raised questions about the company’s strategic direction, especially given his reputation as an “anti-woke” activist opposed to corporate involvement in social and environmental causes.
In recent years, BuzzFeed has undergone significant restructuring efforts in a bid to reach profitability. This includes the closure of its news division and multiple rounds of layoffs, with the company selling off assets like Complex Networks to streamline operations. Despite reporting an adjusted EBITDA loss in the first quarter, BuzzFeed remains optimistic about its future prospects, expecting a flat year-over-year performance in the current quarter.
Ramaswamy’s involvement in BuzzFeed could signal a new chapter for the company as it navigates the evolving digital media landscape. Investors will be closely watching to see how his proposed changes impact the company’s performance and whether BuzzFeed can regain its former glory under his guidance.
