Entrepreneur Vivek Ramaswamy recently became Buzzfeed's fourth-largest investor, buying nearly 3 million shares and acquiring a 7.7% stake in the media company. The move has sent Buzzfeed's share price soaring, with Ramaswamy's investment period running from March to Tuesday, during which share prices fluctuated between $1.47 and $2.51. The total investment is estimated at about 3.9 million dollars.
Ramaswamy has expressed his intention to discuss various operational and strategic opportunities with Buzzfeed management to maximize shareholder value, including potential changes in the company's strategy. He believes Buzzfeed is undervalued and presents an attractive investment opportunity.
Following the news of Ramaswamy's investment, Buzzfeed's share price has jumped 25%, hitting an intraday high of $4.56, the highest since March 17, 2023. The three largest shares of Buzzfeed are now Comcast Corp., NEA Management Co. and Hearst. Communications Inc.
Buzzfeed's market capitalization stood at about $115 million as of Wednesday afternoon, a significant decline from its more than $1 billion valuation when it went public in 2021. The company's trading volume also has seen a sharp rise, which could indicate unusual stock activity.
Since going public, Buzzfeed has faced financial struggles. The company's first-quarter revenue was down 18% compared to last year, with advertising revenue down 22%, content revenue down 19% and commercial and other revenue down 19% year-over-year. In April, Buzzfeed announced the closure of its Pulitzer Prize-winning Buzzfeed News due to the challenging social media-friendly news business model.
Ramaswamy, who is also a potential running mate for former President Donald Trump, has a strong background in entrepreneurship and investment, particularly in the biotechnology and drug development sectors. He founded an “anti-wake” index fund provider and played a major role in drug development company Roivant Sciences, which went public in 2021. In August 2023, he estimates that Ramaswamy's net worth exceeded $950 million.
the mail Vivek Ramaswamy's investment boosts Buzzfeed's share price appeared first NewsGPT.ai.
English 
Español de Venezuela