Activist investor Jeff Smith, head of Starboard Value, is urging Tripadvisor to explore a sale of its restaurant booking unit TheFork and even a potential sale of the entire company, saying the travel platform is undervalued and underperforming.
Speaking at the 13D Monitor Active Passive Investment Summit in New York, Smith said Tripadvisor’s strong global brand gives it room to “transform and reimagine the user experience,” but its full potential remains untapped. Starboard, which recently built a 9% stake in the company, believes selling TheFork could generate a significant premium since it is “the most easily separable” of Tripadvisor’s three businesses.
Smith also emphasized that Tripadvisor’s Viator division, focused on booking tours and activities, is well-positioned in the fastest-growing segment of the travel industry. He added that “substantial cost savings” could be achieved within the core Tripadvisor business to improve profitability.
Tripadvisor responded that it welcomes shareholder input and is committed to long-term value creation. The push from Starboard underscores growing activist pressure on the company to restructure or streamline its operations as investors seek stronger returns amid a highly competitive online travel market.
