BuzzFeed's shares rise after Vivek Ramaswamy's acquisition of an activist position in the company.
BuzzFeed's shares rose by over 25% on a Wednesday after a disclosure revealed that Ramaswamy has amassed a 7.7% stake in the company. This increase was even greater at about 82% early on.
In response to a query from CNN, Ramaswamy informed through their representative, Tricia McLaughlin: "Stay tuned."
To date, BuzzFeed has not yet replied to CNN's enquiry for comment.
According to the filing, Ramaswamy holds the belief that the company's stocks are underestimated and ripe for investment. He also hopes for a change in the company's direction.
Shares of BuzzFeed have dropped by around 92% from their initial public offering in 2021. However, it fares above its previous record-low close of 67 cents per share.
BuzzFeed has had difficulties along with other digital publishers in the recent past, afflicted by a weakening advertising industry, a decline in social media referral traffic, and the arrival of AI.
The company in February sold off Complex Networks for $108.6 million, which they had acquired for $300 million three years ago. This was part of efforts to cut costs and boost the company's profits. BuzzFeed oversees a portfolio consisting of HuffPost, Tasty, and the First We Feast brand - which includes the "Hot Ones" YouTube series.
Last year, BuzzFeed shuttered its Pulitzer Prize-winning digital news site as part of a more extensive move to reduce their workforce by 15%.
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Ramaswamy believes that BuzzFeed's stocks are undervalued, making them a prime investment opportunity in the business world. His acquisition of an activist position in the company could potentially lead to a shift in BuzzFeed's direction.
Source: edition.cnn.com
