Vivek Ramaswamy purchases minority stake in BuzzFeed
Former Republican presidential candidate Vivek Ramaswamy purchases minority stake in BuzzFeed, aiming to address undervaluation and speak with company's board and management. BuzzFeed struggles with sales post-IPO, announces layoffs and shutdown of news division.
Key Points
- Ramaswamy acquired a 7.7% stake in BuzzFeed
- BuzzFeed reported a first-quarter loss of $35.7 million
- Ramaswamy suspended his bid for the 2024 Republican presidential nomination and endorsed Donald Trump
- BuzzFeed's advertising revenue fell 22% and content revenue declined 19%
Pros
- Vivek Ramaswamy believes BuzzFeed's stock is undervalued
- Shares of BuzzFeed Inc. rose 22% after Ramaswamy's acquisition
Cons
- BuzzFeed has struggled with sales since going public
- Job cuts and shutdown of Pulitzer Prize winning digital media outlet BuzzFeed News