Ramaswamy acquires 'activist stake' in BuzzFeed: 'Attractive investment opportunity'

BuzzFeed Media stock shares enjoyed a 25 percent increase in value on Wednesday, May 22, according to CNN, after a securities filing showed that businessman and former 2024 GOP presidential hopeful Vivek Ramaswamy had acquired a 7.7 percent stake in the company.

According to the filing, Ramaswamy — who endorsed presumptive GOP nominee Donald Trump after ending his presidential campaign — is hoping for a "shift in" BuzzFeed's "strategy" and sees BuzzFeed as an "attractive investment opportunity."

CNN's Kystal Hur notes that BuzzFeed stock has been struggling in recent months.

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Hur reports, "Shares of BuzzFeed have plummeted roughly 92 percent since its initial public offering in 2021, though it remains above its record low closing price of 67 cents per share…. The company, in February, sold Complex Networks for $108.6 million, after purchasing it for $300 million three years ago, as part of its effort to slash costs while improving the company's profitability."

The CNN reporter adds, "BuzzFeed's portfolio of brands includes HuffPost, Tasty and the First We Feast brand that houses its 'Hot Ones' YouTube series."

The news of Ramaswamy's 7.7 percent stake in BuzzFeed has been receiving a lot of discussion on X, formerly Twitter.

Axios noted that BuzzFeed shares had reached their "highest point since March 2023," and journalist Sylvia Killingsworth pointed out that Ramaswamy had acquired an "activist stake" in BuzzFeed.

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Forbes pointed out that Ramaswamy is now BuzzFeed's "4th largest shareholder."

Author Steve Faktor commented, "If I find out Vivek Ramaswamy ran for President just to boost his brand and buy BuzzFeed, why I'm gonna..."

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Read CNN's full report at this link.