Activist Investor Starboard Value Details How To Fix Tripadvisor

Key Points

• Starboard Value, an activist investor with a 9% stake, recommends Tripadvisor explore selling its dining platform TheFork and improve the profitability of its core brand.
• Viator, Tripadvisor's tours and activities business, is underperforming competitor GetYourGuide, and Starboard believes its financial profile is unacceptable.
• Tripadvisor is now independent from Expedia and Liberty Tripadvisor Holdings, with Starboard arguing it is undervalued and could be an attractive acquisition target.

Summary

Starboard Value, a major activist investor in Tripadvisor, has outlined several strategies to enhance the company's value, including selling its Europe-focused dining reservations platform TheFork and improving the profitability of its core brand. The investor also criticized Viator, Tripadvisor's tours and activities arm, for underperforming rival GetYourGuide. With Tripadvisor now independent from previous controlling stakeholders, Starboard believes the company is undervalued and could be a strong acquisition candidate, while Tripadvisor's management expressed openness to shareholder feedback.