Entrepreneur and potential Trump running mate Vivek Ramaswamy recently made a significant investment in Buzzfeed, purchasing nearly 3 million shares of the struggling media company. This move has given him a 7.7% stake in Buzzfeed, making him the fourth largest investor. Ramaswamy’s investment has also caused Buzzfeed’s share price to spike, increasing by 25% and reaching a high of $4.56—the highest it has been since March 2023.
Ramaswamy began buying shares of Buzzfeed in March and continued until Tuesday, spending about $3.9 million on the purchase. In a regulatory filing, he stated his intentions to engage with Buzzfeed’s management to discuss various operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy. He believes that Buzzfeed is undervalued and sees it as an attractive investment opportunity.
With this new investment, Ramaswamy has become the fourth largest stakeholder in Buzzfeed, following Comcast Corp., NEA Management Co., and Hearst Communications Inc. The media company’s market capitalization currently stands at about $115 million, a significant drop from its valuation of over $1 billion when it went public in 2021. Despite the challenges Buzzfeed has faced, Ramaswamy remains optimistic about the company’s potential, urging others to “stay tuned” for more developments.
The sudden increase in trading volume for Buzzfeed’s stock has raised questions about potential meme trading or unusual trading activity. The trading volume has been significantly higher than average, indicating heightened investor interest in the company. Buzzfeed has struggled financially since going public, with its latest earnings report showing declines in revenue across various sectors, including advertising, content, and commerce. The closure of Buzzfeed News last year also reflected the challenges the company has faced in sustaining its news operations.
Ramaswamy’s background as an entrepreneur, investor in biotech and drug development, and founder of an “anti-woke” index fund provider has positioned him as a significant player in the business world. His success with Roivant Sciences, a drug development company that went public in 2021, has contributed to his estimated net worth of over $950 million. As he continues to navigate investments and business opportunities, his involvement in Buzzfeed signals potential strategic shifts for the media company and could offer new avenues for growth and profitability.
