Why former GOP candidate Ramaswamy bought a big stake in BuzzFeed

Simone Del Rosario:

Before he posited himself a presidential candidate, businessman Vivek Ramaswamy was making his name as an anti-woke activist investor targeting oil companies in a crusade against ESG. 

But now the conservative commentator is putting his money in the mediascape. His latest reluctant target is BuzzFeed, where he’s bought up a more than 8% stake in the company. 

Ramaswamy’s been buying up shares for months and in a letter to the board, he finally reveals why. 

Some of his demands are typical of an activist investor: He wants three board seats and large-scale layoffs to minimize operating costs. He says BuzzFeed should get down to startup size and keep only the resources needed to create BuzzFeed’s highest-value content, like the Hot Ones series. That means dumping the legacy digitized print business. 

But he’s also looking to sway editorial decisions. In his letter, Ramaswamy envisions pitching the likes of Tucker Carlson, Bill Maher and NFL quarterback Aaron Rodgers to head creator-led content. He says BuzzFeed should, “Go for talent across the political and cultural spectrum. Be bold. Don’t be afraid to challenge your audiences.”

Lastly, Ramaswamy says BuzzFeed needs to apologize for prior reporting, like being the first to publish the so-called Steele Dossier, which linked former President Trump and Russia and was later discredited. 

Now for the response. BuzzFeed CEO Jonah Peretti tells Vivek, first of all, nice to finally hear from you. Remember, he’s been buying up shares for months. 

But other than agreeing that BuzzFeed is undervalued, that’s where the similarities stop. Peretti wrote, “Based on your letter, you have some fundamental misunderstandings about the drivers of our business, the values of our audience, and the mission of the company. I’m very skeptical it makes business sense to turn BuzzFeed into a creator platform for inflammatory political pundits. And we’re definitely not going to issue an apology for our Pulitzer Prize-winning journalism.”

Yes, the website known for quizzes and listicles won journalism’s highest honor for its 2020 reporting on China’s mass detention of Muslims. 

Still, Peretti says he welcomes outside perspectives from shareholders, especially from one of BuzzFeed’s largest, and it looks like the two may arrange a meeting. It’s worth noting Peretti has 64% voting control of BuzzFeed, nearly eight times Ramaswamy’s holding. So no matter how much any investor snaps up, Peretti will have the final say. 

BuzzFeed’s had a rough go of it since going public at the end of 2021. It’s now worth around $3 a share but is up more than 180% in 2024.

I’m SDR for SAN.