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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 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.

Starboard Increases Salesforce Stake Amid Stock Weakness

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Activist hedge fund Starboard Value, which first pushed for changes at Salesforce (CRM.N) three years ago, raised its stake in the U.S. software company by nearly 50% in the second quarter, according to a regulatory filing on Thursday.

As of June 30, Starboard owned 1.3 million shares, up from 849,679 shares at the end of the first quarter when it had already boosted its stake by almost 52%. The move comes amid a nearly 30% drop in Salesforce’s stock price since January and a 9% decline over the past year.

Salesforce, valued at $223 billion, faced pressure from activist investors in late 2022 and early 2023. Many of these investors reduced or exited their positions after the company reported strong results, added a new board director, and implemented other changes. Starboard, known for revisiting past investments if a company backslides on promised reforms, appears to be increasing pressure again.

Starboard CEO Jeffrey Smith previously said Salesforce still had potential to improve efficiency and profitability. The hedge fund also boosted its stake in Pfizer (PFE.N) by 10.5% to 8.5 million shares and reduced its holding in Autodesk (ADSK.O) by nearly 27% after settling a prior engagement with the company.

The filing is a 13F report, which reflects fund holdings at the end of the previous quarter and is closely watched for insights into investment trends.