Home / Business and Economy / Activist Investor Threatens Tripadvisor Board Over Value Destruction
Activist Investor Threatens Tripadvisor Board Over Value Destruction
18 Feb
Summary
- Activist investor Starboard seeks to nominate a majority of Tripadvisor's board.
- Starboard criticizes a nearly 50% stock drop since CEO's 2022 appointment.
- The hedge fund urges Tripadvisor to explore a full company sale.
Activist investor Starboard Value, which owns approximately 9% of Tripadvisor's stock, has publicly stated its intention to nominate a majority of the company's board of directors. This move comes as Starboard accused Tripadvisor's leadership of failing to hold management accountable for significant value destruction, citing a nearly 50% drop in the company's share price since CEO Matt Goldberg assumed the role in 2022.
In a strongly worded letter, Starboard urged Tripadvisor to formally explore the possibility of selling the entire company. The hedge fund also expressed dissatisfaction with the pace of strategic reviews for Tripadvisor's restaurant-booking unit, TheFork. Furthermore, Starboard raised concerns about Tripadvisor's slow adoption of generative artificial intelligence, warning of potential vulnerabilities due to rapid changes in online travel search.
Tripadvisor has responded to these criticisms by affirming that its board and leadership are committed to acting in the best interests of its shareholders. The company emphasized its ongoing focus on initiatives designed to foster sustainable long-term growth and drive value for shareholders.
