Starboard to Push for Big Shake-Up of Tripadvisor’s Board
Travel-site operator’s stock recently fell after quarterly earnings missed analyst expectations
Activist investor Starboard Value plans to push for a shake-up of Tripadvisor’s TRIP -6.88%decrease; red down pointing triangle board, according to a letter reviewed by The Wall Street Journal and people familiar with the matter.
The details
Starboard is preparing to nominate a majority slate on Tripadvisor’s eight-person board.
Starboard’s stake now represents more than 9% of the company, according to the letter and people familiar with the matter.
The activist investment firm run by Jeff Smith plans to issue a letter announcing the plans to Tripadvisor’s board Tuesday morning, according to the people.
Tripadvisor’s namesake brand allows users to search and review hotels and other travel experiences. It also owns Viator, which lets users book tours and activities, and TheFork, a restaurant reservation tool.
Tripadvisor has a market cap of about $1.1 billion after the stock fell nearly 46% in the past year.
The context
The Journal reported in July that Starboard had built a stake valued at the time at about $160 million.
The firm has publicly agitated in recent months for Tripadvisor to explore a sale of TheFork, and to consider selling itself. Starboard has also argued the company should boost profitability at Viator and the namesake brand.
Tripadvisor’s shares tumbled last week after its fourth-quarter results missed Wall Street’s expectations. The company’s stock had already been pressured by investor fears that advances in artificial intelligence would hit software businesses especially hard.
It is relatively rare for activist investors to seek the majority of seats on boards. Starboard about a decade ago led a successful shareholder coup at Olive Garden owner Darden Restaurants and kicked off a turnaround.