BuzzFeed Inc. shares soared Wednesday after the entrepreneur and former US presidential candidate Vivek Ramaswamy reported a stake in the online media company and asked for talks with the board.

Ramaswamy, a Republican who ended his candidacy in January and threw his support behind Donald Trump, has taken a 7.7 per cent stake in BuzzFeed, worth about US$6.81 million based on Tuesday’s closing share price. In a filing with the Securities and Exchange Commission, Ramaswamy said he seeks to “engage in a dialogue with board or management about numerous operational and strategic opportunities to maximize shareholder value, including a shift in the company’s strategy.”

The stock surged 20 per cent to $3.01, the biggest gain since January 2023. 

Ramaswamy founded pharmaceutical company Roivant Sciences Ltd. in 2014 and co-founded Strive Asset Management in 2022. He stepped away from the asset management firm last year to focus on his presidential run and has said he isn’t returning. Ramaswamy’s position in BuzzFeed marks his latest move since ending his political campaign, and his interest in BuzzFeed raises questions about the direction of the company. “Stay tuned,” Ramaswamy said through a spokesperson when asked for comment about his investment. 

“BuzzFeed is purposely structured to protect its editorial integrity,” a spokesperson for the company said in a statement. “We are always open to hearing ideas from our shareholders.”

Strive Asset Management is an anti-activism fund, which has pushed companies to stay out of “woke” politics and has pressured about a dozen companies to end compensation incentives for environmental and social goals. The purchase makes Ramaswamy the fourth largest shareholder in BuzzFeed, trailing Comcast Corp., NEA Management Co. and Hearst Communications Inc.

BuzzFeed, known for its online quizzes, lists of “bests” and articles on pop culture, has struggled in recent years due to cutbacks in internet advertising. The company went public in 2021 in a volatile debut and the shares have fallen about 92 per cent since then. Last year, the company eliminated its news division amid broader layoffs and in quarterly results released last week BuzzFeed said it expects revenue to decline 21 per cent to 30 per cent in the current quarter. That’s after an 18 per cent decline in sales in the first three months. 

To address its capital needs, the company said in a separate securities filing last week that it “may explore options to restructure its outstanding debt, and is working with advisers to optimize its condensed consolidated balance sheet.” Last week, BuzzFeed announced changes that would tie compensation of Chief Executive Officer Jonah Peretti and other executives to the company’s stock performance. 

Earlier this year BuzzFeed said it would sell media company Complex for $108.6 million and reduce its remaining workforce by 16 per cent.

Including Wednesday’s market rally, BuzzFeed had a market capitalization of $110 million. 

With assistance from Bre Bradham.