Starboard Value’s plan to boost shareholder value at Match is thoughtful and complex.
provides dating products worldwide. The company's portfolio of brands includes Tinder, Match, The League, Meetic, OkCupid, Hinge and PlentyOfFish. Match's services are available in over 40 languages to users all over the world.Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. Starboard has taken a total of 151 activist campaigns in its history and has an average return of 25.
While Starboard's engagement at Match has been reported by mainstream media as a"sell the company" campaign, it is much more thoughtful and complex than that. It's more of an operational engagement, at least as Plan A. The main issue here is that revenue growth has slowed from 20% to an expected 5.7% in 2024, but the company has continually increased spending to try and chase its former high-growth profile.
If management cannot create shareholder value through increasing revenue growth, and they fail to rein in costs and improve operating margins, Starboard thinks they must keep an open mind and fully understand the potential value creation opportunity available through a sale of the company and compare the alternatives on a risk-adjusted basis. Starboard thinks that this is a highly valuable asset that may be well-suited to operate as a private company.
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