Starboard Value Takes 9% Tripadvisor Stake, Shares Surge

Activist hedge fund Starboard Value disclosed a stake of slightly more than 9% in Tripadvisor, according to a filing with the U.S. Securities and Exchange Commission on Thursday. The holding, worth about $160 million at Wednesday’s close, places the New York-based fund among the travel-review site’s largest shareholders. The news sent Tripadvisor shares up roughly 10% in early New York trading after rising as much as 17% in pre-market dealings. Before the disclosure, the stock had fallen about 17% over the past 12 months, leaving the company with a market value near $1.9 billion. Starboard said it believes the shares are undervalued and plans to engage with management on steps to bolster performance and lift the share price. Tripadvisor formed a special committee early last year to consider strategic options, including a potential sale, but ultimately remained independent after rebuffing takeover interest. The position adds Tripadvisor to a growing list of Starboard campaigns. Led by Chief Executive Officer Jeffrey Smith, the fund has recently pushed for change at companies including Kenvue, Pfizer and Autodesk, often seeking board seats and operational overhauls.