BuzzFeed鈥檚 stock is soaring after former Republican presidential candidate Vivek Ramasamy revealed that he鈥檚 taken an activist stake in the beleaguered media company in a bid to adjust the firm鈥檚 strategy.
Shares of BuzzFeed gained more than 20 per cent on Wednesday after a securities filing revealed that Ramaswamy has acquired a 7.7 per cent stake in the company. The stock popped more than 82 per cent earlier at its highs.
鈥淪tay tuned,鈥� Ramaswamy told CNN through spokesperson Tricia McLaughlin.
BuzzFeed did not immediately respond to CNN鈥檚 request for comment.
Ramaswamy 鈥渂elieves the securities of the Issuer are undervalued and represent an attractive investment opportunity,鈥� the filing.
He also seeks a 鈥渟hift in the Company鈥檚 strategy,鈥� the filing said.
Shares of BuzzFeed have plummeted roughly 92 per cent 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鈥檚 profitability. BuzzFeed鈥檚 portfolio of brands includes HuffPost, Tasty and the First We Feast brand that houses its 鈥淗ot Ones鈥� YouTube series.
Last year, BuzzFeed shuttered its Pulitzer Prize-winning digital news site as part of a broader move to slash the company鈥檚 headcount by 15 per cent.
