Former Republican presidential candidate and biotech entrepreneur Vivek Ramaswamy has recently acquired a minority stake in BuzzFeed, the digital publishing company that made the decision to close its media outlet in the previous year.
The company’s shares experienced a significant surge on Wednesday, soaring to new heights.
According to a filing with the Securities and Exchange Commission late Tuesday, Ramaswamy has purchased a 7.7% stake in BuzzFeed.
Ramaswamy expressed in the filing his belief that BuzzFeed’s stock is currently undervalued. He intends to engage with the company’s board and management to discuss this matter further.
BuzzFeed has faced challenges in boosting its sales since its IPO in 2021. In late 2022, the company initiated job cuts, attributing them to a challenging digital advertising landscape. Moreover, in the early part of last year, BuzzFeed made the decision to shut down its acclaimed digital media platform, BuzzFeed News, which had won a Pulitzer Prize.
In a memo to staff, Jonah Peretti, the co-founder and CEO of the corporate parent, announced that layoffs would occur not only in the news division but also in the business, content, tech, and administrative teams.
BuzzFeed recently announced its financial results for the first quarter, revealing a loss of $35.7 million, equivalent to 72 cents per share. The company’s revenue for the same period stood at $44.8 million. Unfortunately, advertising revenue experienced a significant decline of 22%, while content revenue also dropped by 19%. These figures highlight the challenging revenue situation that BuzzFeed is currently facing.
In January, Ramaswamy decided to suspend his campaign for the 2024 Republican presidential nomination. Despite a disappointing fourth-place finish in Iowa’s leadoff caucuses, he showed his support for former President Donald Trump by endorsing him.
Ramaswamy, the son of Indian immigrants, embarked on a political career at the pinnacle of his success in the hedge funds and pharmaceutical research sectors. With a remarkable journey that began at Harvard University and continued at Yale Law School, he amassed a fortune worth hundreds of millions of dollars.
BuzzFeed Inc., a New York City-based company, saw a significant increase in its stock prices on Wednesday. The shares surged by 22% and reached approximately $3.05 in the early hours of the day.
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