BuzzFeed stock rose after Vivek Ramaswamy acquired the activist’s stake

BuzzFeed (BZFD) stock rose as much as 83% in early trading Wednesday after former Republican presidential candidate Vivek Ramaswamy revealed 7.7% share At the beleaguered media giant he indicated that he would push for changes at the company.

According to an SEC filing, Ramaswamy believes BuzzFeed shares are “undervalued and represent an attractive investment opportunity.” He intends to engage the board in discussing “several operational and strategic opportunities to maximize shareholder value, including a shift in corporate strategy.”

BuzzFeed, once seen as the crown jewel of digital media, suffered after going public via a special purpose acquisition company, or SPAC, in 2021. The stock has fallen more than 90% since then.

The stake disclosure raises more questions about BuzzFeed’s strategic direction. Ramaswamy, a 38-year-old biotech entrepreneur, subsequently endorsed Donald Trump Dropping out of education From the presidential race in January after the Iowa caucuses. He has built a reputation as a “Anti-woke” activist. Oppose corporate involvement in social and environmental issues.

FILE - Vivek Ramaswamy speaks during the Conservative Political Action Conference, CPAC 2024, at National Harbor, in Oxon Hill, Maryland, Saturday, Feb. 24, 2024. Ramaswamy bought a 7.7% stake in Buzzfeed, the Pulitzer Prize-winning digital media outlet that has entered into a restructuring. last year.  Shares rose more than 50% before the market opened on Wednesday, May 22. (AP Photo/Alex Brandon, File)

Vivek Ramaswamy speaks during CPAC 2024 in Oxon Hill, Maryland, February 24, 2024. (AP Photo/Alex Brandon, File) (News agency)

In the past year, the company has undergone major changes in an attempt to reach profitability.

BuzzFeed announced plans to close its news division and cut staff by 15%, or about 180 employees, in April 2023. Earlier this year, the company said it would cut additional staff 16% of its workforce “To reduce central costs and allow the company to become more resilient, sustainable and profitable.”

Along with the layoffs, BuzzFeed also sold its digital media company Complex Networks, Which it acquired in 2021 for about $300 millionfor the live video shopping platform NTWRK In a cash deal worth $108.6 million. BuzzFeed received approximately $5.7 million in severance pay and office-related fees in addition to the purchase price.

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Last week the company mentioned Adjusted EBITDA loss of $11.3 million in the first quarter But it said it expects adjusted EBITDA to be in the range of a loss of $4 million to a profit of $1 million in the current quarter, “roughly flat on a Annual at the midpoint.”

Alexandra Canal He is a senior reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 And email it to [email protected]

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