Tripadvisor engages with Starboard as activist seeks board control, sale

Feb 17 (Reuters) - Tripadvisor TRIP.O said on Tuesday its board and management held multiple discussions with activist investor Starboard Value, which owns about 9% of the company and has accused it of failing to hold management accountable for "value destruction".

In a sharply worded letter on Tuesday, Starboard, said the online travel company's shares have fallen nearly 50% since CEO Matt Goldberg took over in 2022 and recently hit an all-time low.

"During the company's upcoming window for shareholders to submit director nominations with respect to the Company's 2026 annual meeting of shareholders, we intend to nominate a highly-qualified slate of directors representing a majority of the Board," Starboard said.

The hedge fund urged Tripadvisor to formally explore a sale of the entire company and criticized the pace of efforts to review strategic alternatives for its restaurant-booking unit, TheFork.

Starboard also faulted the company for moving too slowly to adapt to generative AI, warning that rapid changes in online travel search could leave Tripadvisor vulnerable.

In response, Tripadvisor said its board and leadership remained focused on acting in the best interests of shareholders and it would continue to pursue initiatives aimed at delivering sustainable long-term growth.

"Management and the Board are focused on pursuing all avenues to drive value for shareholders," it said.

Starboard did not immediately respond to Reuters request for comment on Tripadvisor's statement.