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Tripadvisor Surges as Starboard Takes Activist Stake, Signaling Potential Shakeup

Tripadvisor (TRIP) is back in the headlines—and back on investors' radar—after activist hedge fund Starboard Value revealed a stake exceeding 9% in the online travel review company.

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The announcement triggered a surge in the stock, adding to a rally that began earlier in the week and positioning the long-struggling travel platform for a potential strategic transformation.

Investor Catalyst: Starboard Steps In
Shares of Tripadvisor soared as much as 17.5% on Thursday following confirmation that Starboard Value now holds over 10.6 million shares, an investment valued at approximately $160 million as of Wednesday’s close. In a regulatory filing, Starboard described Tripadvisor as “undervalued” and said it would engage with management and the board to explore “opportunities for value creation.”

Starboard is known for pushing operational changes, cost reductions, and board reshuffles across its portfolio companies. Recent campaigns have included Autodesk, Salesforce, and Pfizer. Its investment in Tripadvisor could signal serious pressure for change—ranging from a leadership overhaul to a renewed push for a sale or divestiture of assets.

A Travel Stock Reawakens
Tripadvisor’s stock had been trading flat for the year before this week’s news, following a brutal 2024 in which shares fell more than 30%. The pandemic-era travel recovery lifted competitors like Airbnb (ABNB) and Booking Holdings (BKNG) into the green, but Tripadvisor struggled to keep pace. Its namesake site has lost share even as subsidiaries like Viator and TheFork grew. While the company rebounded modestly in early 2025, its valuation remained depressed, with a market cap just shy of $2 billion before the rally.

Now, Starboard’s involvement is breathing new life into the stock. Shares climbed over 8% Wednesday on initial reports, then another 17% Thursday, as investors speculated on potential strategic moves, including renewed M&A talks. The company reportedly rejected several takeover offers over the past year, and its board formed a special committee in early 2024 to review strategic alternatives.

Strategic Review Back in Focus
While Starboard hasn’t disclosed specific demands, the firm’s track record suggests a range of possibilities—from management changes and asset sales to full takeovers. With pressure mounting, Tripadvisor’s special committee could soon revisit proposals previously dismissed.

Travel stocks, battered earlier this year by macro headwinds including tariffs and inflation fears, have bounced back sharply since April. Starboard’s bet on Tripadvisor may reflect a broader belief that the sector’s recovery still has legs—and that Tripadvisor, despite its recent underperformance, remains a valuable asset in a consolidating online travel landscape.

Conclusion
Starboard Value’s $160 million vote of confidence has jolted Tripadvisor back into relevance. The travel company’s fortunes could hinge on how it responds to activist pressure—and whether it’s ready to embrace the kind of change that could unlock long-sought shareholder value. For investors, all eyes now turn to what comes next from one of Wall Street’s most seasoned agitators.


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