Vivek Ramaswamy’s quest to continue remaking Buzzfeed (NASDAQ:BZFD) has taken a new turn. Indeed, the billionaire and former Republican presidential candidate isn’t the only conservative buying up shares of BZFD stock. Now, the family of noted businessman William J. Pulte is jumping on board, having taken an activist stake in the digital media company.
Noted for contributing to the campaigns of Republican politicians, the Pultes seem to share Ramaswamy’s vision for changing the platform. This comes at a time when political tensions in the U.S. are extremely high as the 2024 presidential election draws closer.
What’s Happening With BZFD Stock?
News of this new investment has sent BZFD stock into the green after some volatility this morning. Shares closed out the day up by about 5%. The past week has been volatile so far as well, although shares have remained mostly in the green and are up 8% as of this writing.
Since Ramswamy first staked his bet on the company in May 2024, shares have been slowly trending upward. Now, his position seems to have inspired the Pulte family, who has taken an activist stake in the company.
The Pulte family shared the following statement on X:
“In our opinion, the Current BuzzFeed CEO Jonah Peretti is driving the company into the ground, and when Vivek Ramaswamy gave him a life boat to save his sinking ship, Peretti told him thanks anyway. This is exactly the type of hubris that needs to end in corporate America; at every turn, CEO Peretti has delivered unacceptable financial and operational performance, quarter after quarter. If CEO Peretti isn’t up to modernize BuzzFeed, then he should bring in someone who is or he should buy the company back from its shareholders.”
The statement also clarified that the Pulte family is not working with Ramaswamy and did not inform him that they had made the purchase, although the family supports his proposals.
What Comes Next?
It’s partially true that Buzzfeed has struggled in part under CEO Jonah Peretti’s leadership. But there is one important point to consider that the Pulte family’s statement doesn’t account for: BZFD stock is up more than 200% for the past six months and has year-to-date (YTD) gains of more than 170%. This growth period started long before Ramaswamy started buying up shares. Therefore, it seems that Peretti may not actually be driving the company “into the ground” and in fact may be helping the firm grow. With that in mind, there’s no telling what will happen to shares as this conservative takeover continues.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
