Hedge Funds: Starboard Value Pressures for Changes at eBay, Deal at Green Dot
The campaign comes after news of its Green Dot stake.
Starboard Value is pushing for eBay (NASDAQ: EBAY) to sell or spin off its Classifieds Group. The hedge fund took a stake in the company one year ago beside fellow activist Elliott Management.
Both firms have pushed for spending cuts and the divestiture of assets like online ticket marketplace StubHub.
Starboard Value Presses for eBay Changes, Green Dot deal.
However, Starboard Value worries that the company hasn’t made much progress.
“[W]e have been disappointed with the speed and lack of urgency with which the operating and strategic reviews have been conducted since their commencement in March 2019,” Peter Feld, managing member of Starboard, said in a letter to eBay’s board this week.
Starboard Value has requested a meeting with eBay’s board of directors to discuss its position. It also listed several recommendations to unlock value. Like its deal for StubHub, the fund wants eBay to sell its Classifieds Group, despite its reluctance.
“Time is of the essence. It is time for the company to display a sense of urgency it has unfortunately lacked since making commitments almost one year ago,” Feld wrote.
Barron’s reported about this letter a day after Starboard announced it has taken a stake in Green Dot Corporation (NYSE: GDOT). Bloomberg reports that Starboard Value may push for Green Dot to sell itself in a deal. Starboard owns a 9.3% stake in the company.
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