Entrepreneur Vivek Ramaswamy has recently made a significant investment in Buzzfeed, purchasing nearly 3 million shares of the struggling media company. This investment, totaling about $3.9 million, has given Ramaswamy a 7.7% stake in Buzzfeed, making him the fourth largest investor of Class A stock. Following the news of Ramaswamy’s investment, Buzzfeed’s share price has spiked, increasing by 25% and hitting an intraday high of $4.56—the highest it’s been since March 17, 2023.
Ramaswamy has indicated that he plans to engage with Buzzfeed’s management to discuss operational and strategic opportunities to maximize shareholder value. He believes that Buzzfeed is undervalued and sees it as an attractive investment opportunity. Ramaswamy’s decision to purchase a stake in Buzzfeed has raised speculation about his intentions, with the entrepreneur teasing Forbes to “stay tuned” for more information.
Buzzfeed’s market capitalization currently stands at about $115 million, a significant decline from its over $1 billion valuation when it went public in 2021. The media company has faced challenges, with its latest earnings report showing declines in revenue across various segments. Additionally, Buzzfeed announced the closure of its Buzzfeed News division, citing difficulties in sustaining a news business tailored for social media.
Ramaswamy’s investment in Buzzfeed comes at a time when he is being considered as a potential running mate for former President Donald Trump. Having previously ended his own presidential campaign, Ramaswamy has been recognized for his entrepreneurial ventures and investments in biotech and drug development. He founded an “anti-woke” index fund provider and grew his fortune significantly through his involvement in Roivant Sciences, a drug-development company that went public in 2021.
The sudden increase in Buzzfeed’s trading volume has raised questions about potential meme trading or unusual activity with the stock. As of 11:30 a.m., Buzzfeed’s trading volume was significantly higher than its average, indicating heightened investor interest and activity. Despite the challenges faced by Buzzfeed, the company remains open to hearing ideas from its shareholders and is structured to protect its editorial integrity, according to a statement from a company spokesperson.
Overall, Ramaswamy’s investment in Buzzfeed has sparked curiosity and speculation within the business and media industries. With the entrepreneur’s significant stake in the company and plans to engage with management, it remains to be seen how this investment will impact Buzzfeed’s future trajectory and performance in the media landscape. Stay tuned for further developments as Ramaswamy’s involvement in Buzzfeed unfolds.
