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Starboard’s Jeff Smith Urges Tripadvisor to Explore Sale of TheFork or Entire Company

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Starboard Value CEO Jeff Smith called on Tripadvisor (TRIP.O) to consider selling its restaurant reservation platform TheFork—and potentially the entire company—as part of a broader effort to unlock shareholder value. Speaking at the 13D Monitor Active Passive Investment Summit in New York, Smith said Tripadvisor’s brand remains “amazing,” but the company has “a huge opportunity to transform and reimagine the user experience to improve revenue growth.”

Tripadvisor operates three main businesses: its flagship travel review and hotel booking platform, Viator, which specializes in tours and experiences, and TheFork, a restaurant booking service. Smith said TheFork, being “the most easily separable and least integrated” of the trio, could be sold “at an attractive multiple.” He also raised the possibility of divesting or restructuring the entire company to unlock more value.

Starboard, which has built a 9% stake in Tripadvisor this year, has been in discussions with the company’s management for weeks. Smith argued that Tripadvisor is “too cheap for a company that is growing” and highlighted Viator’s potential, calling experience booking “the fastest-growing segment in travel.”

In a statement, Tripadvisor said it “values constructive engagement with all shareholders” and remains committed to driving long-term value.

Smith also pointed to significant cost-cutting opportunities within Tripadvisor’s core brand, especially if revenue growth doesn’t accelerate. The hedge fund’s proposal echoes similar activist campaigns where Starboard has pushed for structural changes and asset sales to boost shareholder returns.

Starboard Revives Proxy Fight with CEO Smith’s Nomination to Autodesk Board

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Starboard Value has renewed its proxy fight with Autodesk by nominating three director candidates, including its founder and CEO Jeff Smith, to the engineering and design software company’s board. The hedge fund, which holds a $500 million stake in Autodesk, aims to address concerns about the company’s margin growth and overall performance.

Nominations and Proxy Battle

In addition to Jeff Smith, Starboard has nominated Geoff Ribar, former CFO of Cadence Design Systems, and Christie Simons, a senior partner at Deloitte & Touche, to Autodesk’s 13-member board. Ribar also serves on the board of Acacia Research, a Starboard-backed company, while Simons recently joined Micron’s board.

The move comes nearly a year after a failed attempt by Starboard to push its own slate of director candidates. The hedge fund has criticized Autodesk for overspending compared to its software peers and for underperforming the market, pointing out that Autodesk’s shares have fallen over 7% this year, compared to a modest 1.8% drop in the S&P 500.

Autodesk’s Response and Future Plans

Autodesk has stated that its strategy is working and pointed to the addition of two independent board members in December 2024. The company expressed openness to meeting with Starboard’s nominees but raised concerns about the selection of candidates, questioning their alignment with Starboard’s opportunistic interests.

Starboard’s push for change is seen by some investors as a potential catalyst for increased cost management, enhanced accountability, and a greater focus on AI and cloud technologies, which could create value and improve Autodesk’s financial outlook.

Autodesk has already offered the hedge fund a chance to participate in the process that led to the appointment of the two new directors, including former Kraft Foods CEO John Cahill and Emerson’s COO Ram Krishnan.

Activist Starboard Value Takes $1 Billion Stake in Pfizer, Eyes Turnaround with Former Executives’ Help

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Activist investor Starboard Value has acquired a $1 billion stake in Pfizer, aiming to initiate changes at the pharmaceutical giant amidst its financial struggles, according to sources familiar with the situation. While Starboard’s exact strategy remains unclear, they have reportedly sought the expertise of former Pfizer executives Ian Read (former CEO) and Frank D’Amelio (ex-finance chief) to assist with the company’s turnaround efforts.

Starboard, led by Jeff Smith, is reportedly concerned about Pfizer’s recent shift away from its traditionally disciplined approach to cost management and investment in novel drugs under current CEO Albert Bourla. Pfizer’s revenue and free cash flow surged during the Covid-19 pandemic due to its successful vaccine rollout, but its stock has since underperformed, with shares down approximately 30% compared to 2019 levels. This downturn is partly attributed to Pfizer’s aggressive acquisition strategy, with nearly $70 billion spent on mergers and acquisitions since 2020, some of which have been met with skepticism by analysts.

One controversial acquisition was Pfizer’s $5 billion purchase of Global Blood Therapeutics, a deal that included the sickle cell drug Oxbryta, which the company recently pulled after modest sales of $300 million last year. Pfizer has played down the financial impact of this move, but it has raised concerns about the returns from recent acquisitions.

Return to Disciplined Leadership?

Former CEO Ian Read, who led Pfizer from 2010 to 2019, is remembered for doubling the company’s share value during his tenure by instituting a cost- and core-focused culture. Read’s leadership came at a time when Pfizer faced significant challenges, and his strategy of disciplined cost management and targeted investments helped turn the company around. Starboard appears to be advocating for a return to such leadership principles, contrasting them with the current trajectory under Bourla, which has focused more on acquisitions.

In response to financial pressure, Pfizer has already initiated cost-cutting measures, launching a $4 billion cost-reduction program and later expanding these efforts. Despite these steps, more than $100 billion in shareholder value has been lost since the height of the pandemic, reflecting the company’s ongoing difficulties.

Starboard’s Broader Strategy

Starboard Value, known primarily for its focus on the technology sector, is expanding its influence into the pharmaceutical industry with this Pfizer stake. The firm has been active in recent campaigns against companies like Autodesk, Salesforce, and Match Group, as well as challenging News Corp’s dual-class share structure.

This move marks a significant shift for Starboard, as it seeks to bring its activist playbook to Pfizer, a company that has historically weathered various challenges but now faces questions about its post-pandemic future. Starboard’s involvement signals a possible push for further restructuring at Pfizer, though the exact plans are yet to unfold.