Investor grabs 9% of "undervalued" Tripadvisor Group

Starboard Value has taken a 9% stake in Tripadvisor, causing a 7% increase in the reviews giant's shares in after hours trading on July 2.

According to its website, Starboard Value seeks to invest in "deeply undervalued companies." In a stock exchange filing, the company described the purchase as an attractive opportunity, adding that it planned to communicate with Tripadvisor's management and board of directors regarding "opportunities for value creation."

A note on Barron's said the investment from Starboard was good news for the travel industry as it could signal a recovery for the second half of the year. It also predicted further gains for Tripadvisor on July 3.

Tripadvisor announced in early 2024 that it had appointed a special committee to evaluate a potential sale. It then ruled out a sale three months later as the committee determined it was not in the best interests of the company. However, in November 2024, CEO Matt Goldberg said the exploration of alternatives was ongoing.

Jake Fuller, managing director of investment bank BTIG, explored what Starboard might do in his note about the deal. Fuller's highlights included revisiting strategic alternatives, unlocking the value of Tripadvisor Group-owned brands Viator and TheFork and finding ways to breathe new life into the legacy business "maybe leaning into things like AI trip planning, memberships and/or on-platform bookings."

Tripadvisor already has an initiative underway to improve trip planning with Perplexity. Goldberg has spoken in the past about loyalty and membership programs for the group and why the company took the focus off its Tripadvisor Plus paid subscription program.

During its fourth quarter and full-year 2024 financial report, the company said experiences was "becoming the strategic and financial center" of the group. It later announced the appointment of ex-Booking.com executive Pepijn Rijvers as president of Viator.

News of the Starboard investment coincided with the unveiling of a brand refresh for Tripadvisor, which celebrates its 25th anniversary later this year. 

At Phocuswright Europe 2025, Goldberg and Rijvers discussed building trust in the brand, membership opportunities and the company's artificial intelligence strategy: