Vivek Ramaswamy Buzzfeed stake sends shares up 20%, seeking strategic 'shift'
Former GOP presidential hopeful Vivek Ramaswamy had a successful career as an entrepreneur and is devoting some of his wealth to the struggling media outlet.
AbJimroe
Former U.S. President and Republican presidential candidate Donald Trump looks on as former Republican presidential candidate Vivek Ramaswamy speaks at a rally by Trump, in advance of the New Hampshire primary election in Laconia, New Hampshire, U.S. January 22, 2024.
Mike Segar | Reuters
Former GOP presidential hopeful Vivek Ramaswamy has an 8% stake in BuzzFeed and is seeking to effect a "shift" in the media firm's strategy, the investor said Tuesday in a filing.
"Stay tuned," Ramaswamy told CNBC via a spokesperson. The wealthy conservative indicated in a regulatory filing that he would seek to dialogue with Buzzfeed's management about every aspect of the company's operations, up to and including an acquisition by a third party.
Buzzfeed shares opened up 55% on the news. Shares pared back gains and were up about 20% as of 10:25 a.m. ET. The stock closed Tuesday at $2.50.
BuzzFeed did not return a request for comment. The media outlet went public via de-SPAC in an ill-received 2021 debut. Shares have fallen 94% since then, with CEO Jonah Peretti telling CNBC in a prior interview that his job was to "set us up with a better future."
Ramaswamy's involvement raises questions about Buzzfeed's direction. His Strive Asset Management has pushed companies to stay out of "woke" politics and opposed the widespread adoption of environmental, social and governance, or ESG, principles.
Companies should "do whatever allows them to be most successful over the long run without regard to political, social, cultural or environmental agendas," Ramaswamy told CNBC in a 2023 interview.
The once-viral company has been hit hard by changing news habits. It shuttered its Pulitzer Prize-winning news division in 2023, laying off 15% of its staff at the time. BuzzFeed was dependent on social-media and search traffic to drive visitors to its properties, and as those platforms have changed or deprioritized news it has also impacted BuzzFeed's bottom line.
Ramaswamy made his fortune via Strive and his drug development firm Roivant Sciences. He is also the author of "Woke, Inc.," where he decried the social justice movement sweeping the country in 2020 and 2021 as a "scam."
Ramaswamy has remained close to the Mar-a-Lago circuit after throwing his support behind former President and presumptive GOP nominee Donald Trump. It's unlikely, however, that he will be Trump's vice-presidential pick, given that several GOP operatives and donors have expressed deep opposition.
Disclosure: CNBC parent NBCUniversal is a minority investor in BuzzFeed.
— CNBC's Alex Sherman and Brian Schwartz contributed to this report.
