Buzzfeed is amongst the headlines again. This time, it is a synergy of two headline makers, namely Buzzfeed and Vivek Ramaswamy. The former Republican presidential (US) aspirant and potential Vice Presidential candidate, who has bagged 7.7 per cent 'activist stake' in the company. This resulted in a jump of the company's shares on the stock market.
The 'Activist' In Ramaswamy
Here, an 'activist stake' is the practice of purchasing a minority stake in a company to change the functioning of a company. This, in many ways, is similar to the developments at Disney, wherein minority stakeholders are trying to steer the company in a certain direction.
Buzzfeed as a company has transformed and flourished over the years, from being the centre of an innocuous quiz, telling you which type of onion you are to doing hard-hitting journalism.
Financial crunch is something that some of the big names in the modern-day 21st-century media outlets have been struggling with. May it be the comedy content network, College Humor or news media networks like Vice and Buzzfeed. |
The organisation even went on to win the coveted Pulitzer Prize in 2021, for its reporting on China's Xinjiang province and the struggles of the persecuted Uyghur community there. But, all good things come to an end as the company's news outlet BuzzFeed News ceased its operations in 2023. Which also resulted in a reduction of 15 per cent its total workforce.
Testing Times For BuzzFeed
Financial crunch is something that some of the big names in the modern-day 21st-century media outlets have been struggling with. May it be the comedy content network, College Humor or news media networks like Vice and Buzzfeed.
Therefore Vivek Ramaswamy's purchase comes at a crucial juncture. BuzzFeed is not necessarily the American Right's favourite platform and Ramaswamy's minority stake in changing its way could be intriguing story, worth the watch.
The company has not been on its best legs, as the fortunes of the popular site has seen a steady decline.
Ramaswamy being a staunch rightwing Republican, may have plans, that may end up placating the very core of the production of content.
This news shot up the price of the shares of the company on the stock markets. In the matter of five days the share prices jumped 22.27 per cent. The shares ended the day with at USD 2.80. at the end of the day's trade on Friday, May 24. The total worth of his purchase is estimated to be around USD 25,384,275.
