Scoop: Vivek Ramaswamy meets with BuzzFeed CEO amid activist campaign
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Vivek Ramaswamy and BuzzFeed CEO Jonah Peretti recently met for more than an hour, to discuss the former presidential candidate's activist campaign against the media company, Axios has learned.
Why it matters: Ramaswamy announced his BuzzFeed stake with an incendiary letter, but the virtual confab was amicable and ended with the two sides agreeing to sit down in person later this summer or in early fall.
State of play: BuzzFeed stock climbed above $3 per share upon Ramaswamy's initial disclosure of a 7.7% ownership position, but it's since sunk closer to $2 per share — imparting the former unicorn with a market cap below $80 million.
- Ramaswamy has continued to increase his stake, disclosing Monday morning that it's risen to 8.9%.
Behind the scenes: Last Thursday's meeting, which Peretti requested in his initial response to Ramaswamy, also included a BuzzFeed director and two of the three individuals that Ramaswamy wants to be added to the company's board: Chris Balfe (Red Seat Ventures) and podcaster Patrick Bet-David.
- Ramaswamy's third director pick, OutKick founder Clay Travis, did not attend but was briefed. All three proposed directors, who hadn't been publicly identified until now, are veterans of conservative media.
- Ramaswamy claimed in the meeting that several former BuzzFeed employees and early investors reached out to him, saying that the company needed change.
- He also got reminded that shareholders would likely need to vote on any major change to board construction. Particularly given that Ramaswamy is a 9% owner asking for a 37.5% piece of the board (currently five directors, with his request expanding it to eight).
What they're saying: Ramaswamy tells Axios that the meeting was "constructive"
- A BuzzFeed spokesperson tells Axios: "We appreciate Vivek Ramaswamy's recommendations, and they will be sent to governance as per the formal process that he is no doubt aware of."
Elsewhere: Bloomberg reported Monday that BuzzFeed has spent months seeking to sell First We Feast, owner of the "Hot Ones" show that Ramaswamy praised in his letter. The initial asking price was $70 million.
The bottom line: Tensions have cooled, but the core disagreements over company mission and model remain far from resolved. Don't be surprised to see fireworks later this year.
