Shares of BuzzFeed, a notorious slideshow clickbait farm and propaganda disseminator – which recently fired its entire “news” division – soared early Wednesday after multi-millionaire and former US presidential candidate Vivek Ramaswamy reported a stake in the online media company and asked for talks with the board.
Ramaswamy, who ended his candidacy in January and threw his support behind Donald Trump, has taken a 7.7% stake in BuzzFeed, worth about $6.81 million. The tiny purchase makes Ramaswamy the fourth largest shareholder in BuzzFeed, trailing Comcast, NEA Management and Hearst Communications, all of whom invested in the nearly insolvent company at a time when its valuation was orders of magnitude higher.
In a filing with the Securities and Exchange Commission, Ramaswamy said he seeks to “engage in a dialogue with board or management about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy.”
The stock surged as much as 55% to $3.94 in premarket trading in New York; it was the biggest one-day gain since February.
BuzzFeed, best known for publishing the salacious and fake Trump dossier, but has since refocused on its core competency of online quizzes, lists of “bests,” and AI-written tabloid articles on pop culture, has imploded in recent years due to cutbacks in internet advertising. Last year, the company eliminated its news division amid broader layoffs, and has long been on the verge of collapse.
Ramaswamy founded pharmaceutical company Roivant in 2014, and co-founded Strive Asset Management in 2022. He stepped away from the asset management firm last year to focus on his presidential run and has said he isn’t returning; instead it now appears he is hoping to become a media baron. Ramaswamy’s position in BuzzFeed marks his latest move since ending his political campaign.
Tyler Durden
Wed, 05/22/2024 – 09:25
