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Starboard Takes 8.5% Stake in BILL Holdings, Plans Boardroom Challenge

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Activist investor Starboard Value disclosed on Thursday that it has built an 8.5% stake in BILL Holdings (BILL.N) and plans to nominate directors as part of a boardroom challenge to push for changes at the financial automation software company. The move was confirmed in a U.S. Securities and Exchange Commission filing, which followed a Reuters report earlier in the day.

BILL Holdings’ shares surged as much as 10% in after-hours trading after the news. The company, headquartered in San Jose and valued at nearly $5 billion, processes more than 1% of U.S. GDP through its platform but has seen its stock lose almost half its value since January. Shares have fallen 86% from their November 2021 peak, though the company has authorized a $300 million share repurchase program, acknowledging its stock is undervalued.

Starboard’s filing said it intends to nominate director candidates, and discussions with management and the board are ongoing. Four of BILL’s 12 directors are up for election at this year’s annual meeting, and sources said Starboard may put forward as many as four nominees before Saturday’s deadline. BILL stated that it values engagement with all shareholders and will consider Starboard’s candidates once officially nominated.

While BILL expects revenue to grow up to 15%, it currently trades at just three times revenue, making it one of the least expensive U.S. technology firms. Analysts say this, along with increasing M&A activity in the sector, could make it an attractive acquisition target. Rivals such as Melio, AvidXchange, and Esker have all recently been acquired by strategic buyers or private equity firms.

Starboard has a track record of pushing operational improvements and strategic changes. It has recently taken positions in Rogers (ROG.N) and Tripadvisor (TRIP.O), and has previously reached boardroom settlements at Autodesk (ADSK.O) and Kenvue (KVUE.N). BILL, in its latest 10-K filing, acknowledged the potential disruption activist investors could bring, warning that proxy contests could divert resources and impact business execution.

EA Forecasts Lower Q4 Bookings Amid Slowdown in Gamer Spending, Announces $1 Billion Share Repurchase

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Electronic Arts (EA) lowered its fourth-quarter bookings forecast on Tuesday, citing weaker-than-expected in-game spending, particularly for its popular “FC 25” soccer franchise. The company now anticipates bookings between $1.44 billion and $1.59 billion for the quarter, below the Wall Street estimate of $1.65 billion. This projection follows a previous reduction in its annual bookings forecast due to a slower-than-expected performance of “FC 25” and its new “Dragon Age” title, exacerbated by the ongoing economic challenges such as high inflation.

Despite the downturn in certain segments, EA remains confident in a recovery, with plans for future growth driven by multiple titles under development, including the next installment of its “Battlefield” series. CEO Andrew Wilson expressed optimism for a return to growth in fiscal year 2026 and beyond. Additionally, EA unveiled a $1 billion share repurchase program, which led to a 3% increase in its share price during extended trading hours.

In a move to enhance its sports offerings, EA recently acquired TRACAB Technologies, a company specializing in tracking technology, to further invest in its sports portfolio, which continues to be a key driver of revenue, particularly in American football titles. EA’s net bookings for sports games, including football, are expected to exceed $1 billion this fiscal year.