A wealthy, former presidential candidate is making a pivot to media.
Vivek Ramaswamy has bought an 8 percent stake in BuzzFeed Media and seeks to “shift” the media company’s strategy. “Stay tuned,” a Ramaswamy spokesman told CNBC.
A prominent Trump supporter, Ramaswamy indicated that he will soon be discussing every aspect of the company’s operations with BuzzFeed’s management.
The National Pulse had more details about Vivek’s big move.
Shares of BuzzFeed Inc. experienced a significant rise early Wednesday following an announcement that former U.S. presidential candidate Vivek Ramaswamy has acquired a stake in the online media company and seeks to initiate discussions with its board. Ramaswamy, who ended his political campaign in January and subsequently endorsed Donald Trump, has taken a 7.7 percent stake in BuzzFeed valued at approximately $6.81 million.
The newly acquired position catapults Ramaswamy to the fourth largest shareholder in BuzzFeed, behind major investors such as Comcast, NEA Management, and Hearst Communications. These entities had previously invested in the company when its valuation was significantly higher.
In a filing with the Securities and Exchange Commission, Ramaswamy indicated his intent 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.” Following this disclosure, BuzzFeed shares surged by as much as 55 percent to $3.94 in premarket trading in New York, marking the most substantial one-day gain since February.
Ramaswamy, the founder of Roivant Sciences and co-founder of Strive Asset Management, stepped away from the asset management firm last year to concentrate on his presidential bid. He has since indicated that he does not plan to return to the firm, suggesting his new focus might be transitioning into the media industry.
With Vivek in the mix, expect Buzzfeed to get a major remodel. CNBC writes that “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 BuzzFeed’s bottom line has also been affected.”
Vivek threw his support behind Donald Trump in January following the suspension of his campaign.
