New BuzzFeed Investor Vivek Ramaswamy Asks For Big Changes & Apology
BuzzFeed Shake-Up: Investor Demands Apology, Changes?
Vivek Ramaswamy, a new investor in BuzzFeed, has requested significant changes at the company, including staffing adjustments, board restructuring, and a public apology for past reporting errors. Although BuzzFeed CEO Jonah Peretti rejected the apology, he acknowledged the company’s undervaluation and agreed to meet with Ramaswamy. Ramaswamy, who now holds over 8% of BuzzFeed's shares, believes the company needs a complete overhaul to adapt to AI-driven changes and suggests focusing on creator-led content to redefine BuzzFeed’s brand.
How did Jonah Peretti, CEO of BuzzFeed, respond to Ramaswamy's suggestion of issuing an apology for past reporting?
Jonah Peretti, CEO of BuzzFeed, disagreed with Vivek Ramaswamy's suggestion of issuing an apology for past reporting. In response to Ramaswamy's letter, 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." Despite disagreeing with Ramaswamy's assessment, Peretti offered to meet with the activist investor to discuss the company's strategy1.
What specific changes did Vivek Ramaswamy request in his letter to BuzzFeed's board of directors?
Vivek Ramaswamy, in his letter to BuzzFeed's board of directors, outlined several specific changes he believes are necessary to revitalize the company. Firstly, he called for a complete "ground-up restructuring" to adjust the company size and focus, particularly to prepare for changes brought by AI technology5. He emphasized the need for BuzzFeed to return to a startup size and then invest in areas where it has a competitive edge, such as creator-led audio and video content.
Ramaswamy also proposed that BuzzFeed should redefine its brand around the pursuit of truth and openly admit past journalistic failures5. This includes differentiating itself from competitors by acknowledging reports that may not have met journalistic standards in the past. Furthermore, he suggested that BuzzFeed should diversify its range of voices and not shy away from including talents from across the political and cultural spectrum, indicating that no talent should be off-limits, thereby challenging its audience and broadening its appeal.