New Shareholder Vivek Ramaswamy Believes Buzzfeed Needs To Pivot

Vivek Ramaswamy, a former Republican presidential hopeful, has recently made headlines by acquiring a 7.7% stake in BuzzFeed. His investment amounts to 2.7 million shares in the media company. 

Ramaswamy’s move is part of an activist campaign aimed at shaking up BuzzFeed and potentially influencing its strategy.

Here are some key points about Vivek Ramaswamy’s investment in BuzzFeed:

Stake Acquisition: Ramaswamy purchased the stake between March 14 and May 21, 20242. While 7.7% may seem relatively small, activist investors have historically achieved significant impact with even smaller ownership percentages in other companies.

Vivek Ramaswamy

BuzzFeed’s History: BuzzFeed is known for pioneering clickbait content and later establishing BuzzFeed News. The company has faced challenges, including layoffs, a poorly received stock debut, and misgauging the market’s appetite for digital journalism.

Potential Strategy Shift: Ramaswamy believes that BuzzFeed needs to pivot and has called for changes in the company’s direction. However, his approach—acquiring shares without prior notification—has raised eyebrows. BuzzFeed’s dual-class stock structure gives class B shares (held by company leaders) 50 times the voting power compared to class A shares (which Ramaswamy holds). Despite this, he remains a notable shareholder.

BuzzFeed’s Response: BuzzFeed maintains that its editorial integrity is protected, even in the face of activist investors. The company emphasizes its commitment to maintaining its brand and strategy, which includes a focus on quality journalism.

Ramaswamy’s investment in BuzzFeed has sparked interest and speculation about the company’s future direction.