Edge One Capital Highlights Concerns about BuzzFeed's Governance in Series of Letters to Management

Edge One Capital Voices Concerns About BuzzFeed's Governance
After Meeting with Jonah Peretti

RALEIGH, N.C., Aug. 27, 2024 /PRNewswire/ -- Edge One Capital disclosed its concerns about BuzzFeed's governance in two letters to BuzzFeed's management and board of directors. The first letter highlighted the need for BuzzFeed to address financial discipline, shareholder capitalism, and content creation. Edge One Capital believes these issues stem from lapses in corporate governance and the supervoting shares that privileged shareholders receive.

The second letter came after a meeting between CEO and Chairman Jonah Peretti and Varun Gupta, Founder and Managing Partner of Edge One Capital. Gupta found the meeting troubling. He said, "Although some progress is being made to improve the company's financial performance, BuzzFeed's governance remains a concern. BuzzFeed lacks the proper oversight to prevent future mishaps with strategy and capital allocation, such as poor investments, an ineffective strategy, and excessive dilution to shareholders. A deterioration in shareholder value can repeat itself, similar to past shareholder value declines."

The second letter focused on BuzzFeed's governance concerns. "Shareholders like myself do not have the voice and vote to which a shareholder is entitled," added Gupta. BuzzFeed is both a controlled company and has a classified board. Class B shareholders receive a voting power of 50 votes for every share they own. Class B shares are mainly held by Jonah Peretti. These concerns must be addressed immediately, as both the management and board of directors have a fiduciary duty to protect the interests of all shareholders.

To view the First Letter, click here.
To view the Second Letter, click here.

About Edge One Capital: Edge One Capital is an investment firm based in Raleigh, North Carolina, with an emphasis on deep long-term value for all of its investments. For more information, please contact [email protected] or visit www.edgeonecapital.com

Media contact: [email protected]

SOURCE Edge One Capital