On Tuesday, Starboard Value disclosed it had purchased a 7.5% stake in cloud storage company Box.
The activist hedge fund will now be the third-largest stakeholder in the company behind the Vanguard Group and BlackRock.
Starboard has waged proxy wars in the past, and most notably laid the groundwork for Verizon’s acquisition of Yahoo when it successfully negotiated four board seats away from the search company’s existing investors.
We spoke to analysts, who say that Box’s recent ups-and-downs on the public markets made it an attractive target for an activist investor — and that Box should expect anything from layoffs and cost reductions, to a sale to a larger rival.
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Tuesday might go down as a turning point for cloud storage company Box.
According to a regulatory filing, activist hedge fund Starboard Value purchased 11 million shares of the company, giving it a 7.5% stake. That makes Starboard the third-largest stakeholder in Box, behind Vanguard Group and BlackRock.
Starboard’s involvement is poised to put Box cofounder and CEO Aaron Levie in a predicament, several reports note, because the hedge fund has a track record of waging intense proxy battles for company ownership, ousting existing management, and …read more
Source:: Businessinsider – Technology