Starboard plans major Tripadvisor board shakeup

Activist investor Starboard Value is planning to push for a major overhaul of Tripadvisor’s board, including nominating candidates for a majority of the company’s eight board seats.

Starboard, which now owns more than 9% of the travel platform, is expected to send a letter to Tripadvisor’s board outlining its plans. Neither Starboard nor Tripadvisor immediately responded to requests for comment, and the report has not been independently verified, News.Az reports, citing Reuters.

The move comes amid growing pressure on Tripadvisor following a sharp decline in its share price. The company’s stock has dropped nearly 46% over the past year and recently hit a record low after fourth-quarter results fell short. Tripadvisor currently has an estimated market value of around $1.1 billion.

Starboard has previously pushed the company to explore strategic changes, including considering a sale of TheFork, Tripadvisor’s restaurant booking platform. The hedge fund has a track record of pushing for operational restructuring and leadership changes at companies it invests in.

If Starboard moves forward with board nominations, it could lead to significant governance changes and strategic shifts at the travel review company, which has faced increasing competition and shifting travel industry trends in recent years.

Analysts say activist investor campaigns often focus on improving profitability, restructuring operations, or exploring asset sales to boost shareholder value. The situation is likely to be closely watched by investors as Tripadvisor navigates financial performance challenges and evolving market conditions.

News.Az 

By Aysel Mammadzada