Before he posited as a presidential candidate, businessman Vivek Ramaswamy was making his name as an anti-woke activist investor, targeting oil companies in a crusade against environmental policies. Now, the conservative commentator is putting his money in the mediascape, targeting BuzzFeed.
Ramaswamy now holds an 8% stake in the company after buying up shares for months. In a letter to the board, he finally revealed 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 said 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.
However, he is 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 said BuzzFeed should “go for talent across the political and cultural spectrum. Be bold. Don’t be afraid to challenge your audiences.”
Lastly, Ramaswamy said BuzzFeed needs to apologize for prior reporting, like being the first to publish the so-called Steele Dossier, which linked former President Donald Trump and Russia, and was later discredited.
BuzzFeed responds
BuzzFeed CEO Jonah Peretti agreed with Ramaswamy that the media company is undervalued but that is where the similarities stop.
“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,” Peretti wrote. “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 said he welcomes outside perspectives from shareholders — especially from one of BuzzFeed’s largest — and offered to arrange a meeting.
It’s worth noting Peretti has 64% voting control of BuzzFeed — nearly eight times Ramaswamy’s holding. Peretti will have the final say no matter how much any investor snaps up. Public media companies often have dual share structures to maintain editorial independence from investors.
BuzzFeed has had a rough go of it since going public at the end of 2021. As of the morning of Wednesday, May 29, it is worth around $3 a share but is up more than 180% in 2024.
