Buzzfeed stock surges after Vivek Ramaswamy gains activist interest

Buzzfeed stock surges after Vivek Ramaswamy gains activist interest

Buzzfeed shares soared after former Republican presidential candidate Vivek Ramasamy revealed he was taking an activist stake in the beleaguered media company in an effort to adjust the firm’s strategy.

BuzzFeed shares gained about 20% on Wednesday after a securities filing revealed that Ramaswamy had acquired a 7.7% stake in the company. The stock popped more than 82% earlier in the day at its highs.

“Wait,” Ramaswamy told CNN through spokeswoman Tricia McLaughlin.

In a statement, BuzzFeed Inc said: “BuzzFeed is deliberately structured to protect its editorial integrity. We are always open to hearing ideas from our shareholders.

Ramaswamy “believes the issuer’s securities are undervalued and represent an attractive investment opportunity,” the filing said.

He also sought “a shift in the company’s strategy,” the filing said.

BuzzFeed’s stock has plunged about 92% since its initial public offering in 2021, though it remains above its record low closing price of 67 cents a share.

Buzzfeed has struggled in recent years along with other digital publishers, hit by a softening advertising market, sinking social media referral traffic and the rise of artificial intelligence.

The company in February sold the network complex for $108.6 million, after buying it for $300 million three years ago, as part of its efforts to cut costs while increasing the company’s profits. BuzzFeed’s portfolio of brands includes HuffPost, Tasty and our first eating brand that houses the YouTube series “Hot Ones”.

Last year, BuzzFeed shut down the Pulitzer Prize-winning digital news site as part of a broader move to downsize the company by 15%.

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