Former 2024 Republican presidential candidate Vivek Ramaswamy, in his seven-page letter addressed to Buzzfeed’s board of directors, has pushed to add three more directors that he has appraised and transform its business strategies to survive.
The media company’s market value dipped to less than $100 million from the initial $1.5 billion once it went public in December 2021. Ramaswamy’s purchase of shares has made him the second-largest Class A shareholder with an 8.37% stake.
He said, “The public markets have spoken; I own your stock because I believe BuzzFeed can still become a more valuable company than at its initial listing, but this requires a major shift in strategy…Almost two decades after its founding, BuzzFeed is now effectively a startup with a paltry ~$100 million market capitalization,” he said. “I view that as an opportunity.”
In early 2024, Buzzfeed also cut 16% of its staff to reduce costs, alongside selling off social media company Complex for $108.6 million. Ramaswamy further pushed forth a new business model to subvert possible bankruptcy by the end of the year. The new model includes falling back to startup size and investing in creator-led multimedia content to rebuild Buzzfeed’s distinctive branding.
Ramaswamy urges Buzzfeed to regain public trust
The once “pioneer of social internet” now has its social model “dying or dead,” and the company has no competent strategy to remedy its fall. Ramaswamy also urged to regain public trust in Buzzfeed’s publishing owing to previous egregious journalistic errors such as the unratified publishing of the complete Steele dossier, later found to be full of flaws.
Thus, in his letter, the biotech entrepreneur has emphasized that greater attention be put to Buzzfeed’s online content along with an apology issued to its audience over the inaccurate articles on matters of national importance.
“Americans are desperately turning to other sources of information, such as independently distributed audio and video podcasts,” he said. Against this backdrop, you have a historic opportunity to redefine BuzzFeed and set yourself apart from every other major media organization,” mentioning the addition of personalities such as Tucker Carlson, Aaron Rodgers, and Candace Owens.
In response to partisan objections from Buzzfeed, given his recently-dropped presidential campaign alongside an endorsement to former President Donald Trump, Ramaswamy presented his views as those “in common with [more than] 150 million Americans, while also emphasizing his own qualifications as a “serious founder” who created multiple multi-billion-dollar start-ups.
While Ramaswamy is yet to meet his suggested directors, he seeks to meet both them and the board within the coming few weeks, with nominations by July 15. However, in a letter the company shared with FOX Business from its CEO Johan Peretti, wherein he not only expressed scepticism over Ramaswamy’s letter but also rejects any possibility of issuing an apology.
