Shares of digital media company BuzzFeed (BZFD -3.03%) had been stuck in the doldrums over the past year. But today, the stock suddenly skyrocketed after former presidential candidate Vivek Ramaswamy disclosed a major investment in the company. As of 10 a.m. ET on Wednesday, BuzzFeed stock was up around 30% -- but it had been up as much as 82% earlier in the day.
How much does he own?
The market capitalization for BuzzFeed has mostly fluctuated between $30 million and $60 million in 2024. And that's just too cheap to overlook, according to Ramaswamy. The (almost) billionaire took an interest in BuzzFeed stock back in March when it traded at about $1.50 per share.
According to yesterday's filing with the Securities and Exchange Commission (SEC), Ramaswamy has been a consistent buyer of BuzzFeed stock ever since he started buying in March, and he now owns 7.7% of the company. The investor base had grown bored with BuzzFeed, but it's now reinvigorated after seeing how much he bought.
He wants to maximize shareholder value
This is an interesting match here. According to multiple sources, BuzzFeed tends to lean to the left of the political spectrum in its media coverage. For his part, Ramaswamy ran as a Republican, on the right. Will there be an ideological struggle at BuzzFeed? Time will tell.
Ramaswamy doesn't appear to want to take a passive stake at BuzzFeed. The filing says that the investor plans to talk to management "about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the Company's strategy."
Having dropped 93% from its all-time high (even after today's jump), it does appear that BuzzFeed could use some fresh ideas. And investors are excited that Ramaswamy is coming in to give those ideas.
