BuzzFeed (NASDAQ: BZFD) stock soared in intraday trading Wednesday following reports of former GOP presidential nominee Vivek Ramaswamy acquiring an activist stake in the media firm.
A recent U.S. Securities and Exchange Commission filing has revealed that biotech entrepreneur Vivek Ramaswamy has purchased 2.7 million shares in BuzzFeed (NASDAQ: BZFD) over the past two months, totaling approximately $3.9 million. This acquisition has bolstered Ramaswamy’s ownership to a 7.7% stake in BuzzFeed, positioning him as the fourth largest shareholder in the company, trailing behind Comcast, NEA Management, and Hearst Communications.
In the SEC filing, Ramaswamy stated his intention to engage with BuzzFeed’s board and management, exploring operational and strategic initiatives to maximize shareholder value, including discussions about potential shifts in the company’s strategic direction.
BuzzFeed, once a trailblazer in digital media, has faced challenges since its public debut in 2021 through a merger with a special purpose acquisition company (SPAC). The company, once valued at over $1 billion, has witnessed its market capitalization plummet to $115 million. A recent 18% year-over-year revenue decline in the first quarter, totaling $44.8 million, further underscored its struggles. Moreover, BuzzFeed resorted to laying off 15% of its workforce and discontinuing a new division last year. The company recently proposed a reverse stock split to maintain its Nasdaq listing.
Vivek Ramaswamy is best known for founding Roivant Sciences, a pharmaceutical company established in 2014. He gained additional attention last year when he launched a presidential campaign, subsequently withdrawing from the race in January and endorsing former President Donald Trump.
BuzzFeed (NASDAQ: BZFD) Stock Price Action
On Wednesday, BZFD stock surged 20.40%, closing at $3.01, marking a 52.02% increase for the week. The trading volume was 69,866,992 shares, significantly higher than the average daily volume of 1.60 million.
