BuzzFeed stock surges after frequent presidential candidate Vivek Ramaswamy buys activist stake

BuzzFeed stock soared throughout Wednesday trading following the guidelines that frequent GOP presidential nominee Vivek Ramaswamy has bought an activist stake within the media company.

A U.S. Securities and Exchange Price filing printed that Ramaswamy bought 2.7 million shares in BuzzFeed between March 14 and Might perhaps 21 at a unfold of $1.54 to $2.51 for a entire of about $3.9 million.

The struggling media company’s stock skyrocketed over 50% throughout pre-market trading on Wednesday following the guidelines and reached an intraday high of $4.56. Since then, shares are up 21% to about $3.03.

Ramaswamy now include a 7.7% stake in BuzzFeed, making him the fourth largest shareholder within the corporate within the assist of Comcast, NEA Management and Hearst Communications.

In the filing, Ramaswamy acknowledged he hopes to focus on with the corporate’s board and management “a fats quantity of operational and strategic alternatives to maximize shareholder cost, including a shift within the Firm’s plot.”

A pioneer of digital media, BuzzFeed has struggled since going public in 2021 thru a merger with a completely different purpose acquisition company (SPAC). The corporate, which modified into as soon as valued at over $1 billion, on the second has a market cap of $115 million.

Final year, the media company laid 15% of its workers and shuttered a unusual division.

In its most newest quarterly earnings characterize, BuzzFeed acknowledged its income within the principle quarter of the year fell 18% year over yer to $44.8 million. Final month, the corporate proposed a reverse stock split to preserve its itemizing on the Nasdaq.

Ramaswamy is a biotech entrepreneur who based the pharmaceutical company Roivant Sciences in 2014. He launched his presidential campaign closing year earlier than shedding from the escape this January and and endorsing frequent President Donald Trump.