Yelp shares surged following the Wall Street Journal’s report that an activist investor has called for the company to look into a sale and other strategic options.
(Bloomberg) — Yelp shares surged following the Wall Street Journal’s report that an activist investor has called for the company to look into a sale and other strategic options.
The owner of the reviews site gained as much as 18%, to $38.25 in extended trading.
TCS Capital Management plans to deliver a letter to Yelp’s board on Tuesday in which it makes the case for a sale, arguing that the firm would fetch more than twice its current stock price, the Wall Street Journal reported.
Earlier in May, Yelp reported a 13% jump in net revenue for the first quarter, which Chief Executive Officer Jeremy Stoppelman attributed to strong demand from advertisers.
“Yelp maintains an active dialogue with our shareholders and values constructive feedback on our business and ways to create value,” a Yelp spokesperson said.
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