Vivek Ramaswamy, a former Republican presidential candidate, has disclosed an 8% ownership stake in BuzzFeed, the digital media company.
Ramaswamy, a prominent conservative investor, revealed his intentions to instigate a strategic "shift" within the company in a regulatory filing on Tuesday.
"Stay tuned," Ramaswamy communicated to CNBC through a spokesperson. The investor's filing suggested that he plans to engage in discussions with BuzzFeed's management on all facets of the company's operations, potentially including a takeover by an external entity.
BuzzFeed, which became a public company through a de-SPAC process in 2021, did not respond to a request for comment. The company's initial public offering was poorly received, and its shares have plummeted by 94% since then. In a previous conversation with CNBC, BuzzFeed's CEO Jonah Peretti stated that his role was to "set us up with a better future."
Following the news of Ramaswamy's stake, BuzzFeed's shares experienced a roughly 50% surge, closing on Tuesday at $2.50.
BuzzFeed, once renowned for its viral content, has been significantly affected by evolving news consumption habits. In 2023, the company closed its Pulitzer Prize-winning news division, resulting in the layoff of 15% of its workforce. BuzzFeed's reliance on social media and search traffic to attract visitors to its platforms has been a double-edged sword, as changes or reduced emphasis on news by these platforms have adversely impacted BuzzFeed's financial performance.
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