BuzzFeed’s stock is soaring after former Republican presidential candidate Vivek Ramasamy revealed that he’s taken an activist stake in the beleaguered media company in a bid to adjust the firm’s strategy.
Shares of BuzzFeed gained about 20% on Wednesday after a securities filing revealed that Ramaswamy has acquired a 7.7% stake in the company. The stock popped more than 82% earlier in the day at its highs.
“Stay tuned,” Ramaswamy told CNN through spokesperson Tricia McLaughlin.
BuzzFeed did not immediately respond to CNN’s request for comment.
Ramaswamy “believes the securities of the Issuer are undervalued and represent an attractive investment opportunity,” the filing.
He also seeks a “shift in the Company’s strategy,” the filing said.
Shares of BuzzFeed have plummeted roughly 92% since its initial public offering in 2021, though it remains above its record low closing price of 67 cents per share.
BuzzFeed has struggled in recent years along with other digital publishers, battered by a softening advertising market, sinking social media referral traffic and the rise of artificial intelligence.
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. BuzzFeed’s portfolio of brands includes HuffPost, Tasty and the First We Feast brand that houses its “Hot Ones” YouTube series.
Last year, BuzzFeed shuttered its Pulitzer Prize-winning digital news site as part of a broader move to slash the company’s headcount by 15%.
BuzzFeed, Inc. is an American Internet media, news and entertainment company with a focus on digital media. Based in New York City, BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III to focus on tracking viral content.
