New York
CNN
—
BuzzFeed’s inventory is hovering after former Republican presidential candidate Vivek Ramasamy revealed that he’s taken an activist stake within the beleaguered media firm in a bid to regulate the agency’s technique.
Shares of BuzzFeed gained about 20% on Wednesday after a securities filing revealed that Ramaswamy has acquired a 7.7% stake within the firm. The inventory popped greater than 82% earlier within the day at its highs.
“Keep tuned,” Ramaswamy informed CNN by spokesperson Tricia McLaughlin.
In a press release, BuzzFeed Inc mentioned: “BuzzFeed is purposely structured to guard its editorial integrity. We’re at all times open to listening to concepts from our shareholders.
Ramaswamy “believes the securities of the Issuer are undervalued and signify a beautiful funding alternative,” the submitting.
He additionally seeks a “shift within the Firm’s technique,” the submitting mentioned.
Shares of BuzzFeed have plummeted roughly 92% since its preliminary public providing in 2021, although it stays above its document low closing value of 67 cents per share.
BuzzFeed has struggled lately along with other digital publishers, battered by a softening promoting market, sinking social media referral visitors and the rise of synthetic intelligence.
The corporate in February sold Complex Networks for $108.6 million, after buying it for $300 million three years in the past, as a part of its effort to slash prices whereas bettering the corporate’s profitability. BuzzFeed’s portfolio of manufacturers contains HuffPost, Tasty and the First We Feast model that homes its “Sizzling Ones” YouTube collection.
Final yr, BuzzFeed shuttered its Pulitzer Prize-winning digital information web site as a part of a broader transfer to slash the corporate’s headcount by 15%.