Vivek Ramaswamy, a former Republican presidential candidate and biotech entrepreneur, has acquired a minority share in Buzzfeed, the digital media company that ceased its media operations last year.
According to a filing with the Securities and Exchange Commission on Tuesday, Ramaswamy has acquired a 7.7% stake in Buzzfeed.
In the filing, Ramaswamy expressed his belief that Buzzfeed’s stock is undervalued and indicated his intention to engage with the company’s board and management.
Since its public listing in 2021, Buzzfeed has faced challenges in boosting its sales. Job cuts commenced in late 2022, attributed to a challenging digital advertising landscape.
Additionally, early last year, the company announced the closure of its Pulitzer Prize-winning digital media outlet, BuzzFeed News.
In a memo to staff, the corporate parent’s co-founder and CEO, Jonah Peretti, outlined that layoffs would extend beyond the news division to include its business, content, tech, and administrative teams.
Earlier this month, Buzzfeed announced a first-quarter loss of $35.7 million, or 72 cents per share, with revenue totaling $44.8 million. Advertising revenue experienced a 22% decrease, while content revenue declined by 19%, with the company projecting a worsening revenue situation.
In January, Ramaswamy suspended his bid for the 2024 Republican presidential nomination and endorsed former President Donald Trump after finishing a distant fourth in Iowa’s leadoff caucuses.
The son of Indian immigrants, Ramaswamy ventured into high-level politics after amassing substantial wealth from hedge funds and pharmaceutical research, a career he pursued after graduating from Harvard University and later Yale Law School.
Buzzfeed Inc., headquartered in New York City, saw its shares surge by 59% to approximately $4 early Wednesday.