Starboard Value disclosed a 6.5% stake in Match Group and urged operational changes, including product innovation, margin improvement, cost reductions, and share buybacks.
Shares in Tinder and Hinge owner Match Group (NASDAQ:MTCH) gained around 9% after the news that activist investor Starboard Value had acquired a 6.5% stake in the company.
Starboard is reportedly pushing for operational changes including product innovation and margin improvement.
The activist, alternatively, calls for Match to be put up for sale if a business transformation can’t be successfully executed.
Following this announcement, Match Group's shares increased by 8%. The company
It comes as the dating app firm has faced slowing growth and increased competition.
Starboard has called for cost reductions, product innovation, and share buybacks.
Match is said to be engaged in ongoing discussions with Starboard and other investors – with other activist investors like Elliott Management and Anson Funds also undersood to also have shareholdings in the company.
In New York, Match stock was up $2.92 or 9.12% trading at $34.94.
