Focue Provides the Latest and Most Up-to-Date News, What You Focus On is What You Get.
⎯ 《 Focue • Com 》

Yelp Soars Most Since August on Report of Activist Call for Sale

2023-05-23 17:28
Yelp Inc. shares are on track to rise the most since August following a Wall Street Journal report
Yelp Soars Most Since August on Report of Activist Call for Sale

Yelp Inc. shares are on track to rise the most since August following a Wall Street Journal report that an activist investor has called for the company to look into a sale and other strategic options.

TCS Capital Management plans to deliver a letter to Yelp’s board on Tuesday in which it makes the case for a sale, arguing that the firm could fetch more than double its current share price, the Journal reported, citing unidentified people familiar with the matter.

“Yelp maintains an active dialogue with our shareholders and values constructive feedback on our business and ways to create value,” a Yelp spokesperson said, according to the Journal.

The owner of the reviews site rose 14% to $37.19 in premarket trading Tuesday after the report. If the gains hold, that would mark the biggest increase since Aug. 5.

It isn’t the first time a major investor has pushed for Yelp to explore a sale. In 2019, SQN Investors pushed the company to either follow recommendations to improve its performance or consider selling itself. After Yelp made a series of changes, SQN said the company should still remain open to an eventual sale.

Earlier this month, Yelp reported a 13% increase in net revenue for the first quarter, which Chief Executive Officer Jeremy Stoppelman attributed to strong demand from advertisers.