Former GOP presidential nominee and entrepreneur Vivek Ramaswamy has acquired a 7.7% stake in BuzzFeed, according to a new regulatory filing. This move has led to a significant increase in BuzzFeed’s stock price, which jumped over 50% to $4.15 in pre-market trading, the highest level since March 2023.
🚨🚨🚨 Vivek Ramaswamy to become fourth largest shareholder of Buzz Feed. He has purchased nearly 3M shares of the flailing social media platform since March for a total of roughly $3.9 million. Could Vivek be planning a supporting post election role in the private sector?… pic.twitter.com/AopAG6tr74
— 🇺🇸 Freedom Piper 🇺🇸 (@FreeThinkerInc) May 22, 2024
The filing indicates that Ramaswamy intends to be an activist investor with plans to introduce a “shift in strategy” at the struggling media company. He acquired 2.7 million shares of BuzzFeed between March 14 and May 21, 2023, at prices ranging from $1.54 to $2.51, using his personal funds.
Ramaswamy, a 38-year-old biotech entrepreneur, is known for his active participation in media, frequently appearing on cable TV networks, podcasts, and social media. He dropped out of the Republican presidential nomination race in January and subsequently endorsed former President Trump.
BuzzFeed has faced significant challenges since its volatile public debut in December 2021. In April, the company pursued a reverse stock split to remain listed on the Nasdaq. Last week, BuzzFeed announced changes tying most of the executive team’s compensation, including CEO Jonah Peretti’s, to the company’s stock performance.
Representatives for BuzzFeed and Ramaswamy have not yet commented on the acquisition.