eBay: Starboard Value keeps the pressure
(CercleFinance.com) - eBay saw its shares rise on the Nasdaq on Tuesday after activist hedge fund Starboard Value kept the pressure on the e-commerce company.
Starboard - which views itself as one of eBay's largest shareholders, with a stake of over 1% - said in a letter to both board chairman and CEO that it believes that the company is "deeply undervalued."
According to the hedge fund, eBay has an opportunity to create significant shareholder value through the separation of its classifieds business.
Starboard also sees other "significant" opportunities to unlock value through "operational" and "strategic" initiatives.
The fund - which expressed disappointment over the results of the group's recent review - assures that a more comprehensive and aggressive plan is needed to drive profitable growth, in particular regarding the company's core marketplace business.
eBay shares have risen by up to 2% on the Nasdaq in early morning trading after these comments.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Starboard - which views itself as one of eBay's largest shareholders, with a stake of over 1% - said in a letter to both board chairman and CEO that it believes that the company is "deeply undervalued."
According to the hedge fund, eBay has an opportunity to create significant shareholder value through the separation of its classifieds business.
Starboard also sees other "significant" opportunities to unlock value through "operational" and "strategic" initiatives.
The fund - which expressed disappointment over the results of the group's recent review - assures that a more comprehensive and aggressive plan is needed to drive profitable growth, in particular regarding the company's core marketplace business.
eBay shares have risen by up to 2% on the Nasdaq in early morning trading after these comments.
Copyright (c) 2020 CercleFinance.com. All rights reserved.