Activist Starboard Value takes stake in Starbucks, WSJ reports

Activist Starboard Value takes stake in Starbucks, WSJ reports

Starbucks shares were up 3.2% in extended trading.

The size of the hedge fund’s stake in the company is not known, the newspaper wrote.

The Wall Street Journal, citing people familiar with the matter, also wrote that Starboard’s exact demands could not be learned. Sources have told Reuters that Starboard has not made any demands as it has not contacted the company.

A spokeswoman for Starboard did not respond to several requests for comment. A spokesman for Starbucks declined to comment.

Known for its pricey lattes, Starbucks, last week reported a drop in quarterly global sales hurt by weak demand in the U.S. and a 14% drop in China same-store sales.

© Reuters. FILE PHOTO: A customer exits a Starbucks in Buffalo, New York, U.S., December 7, 2021.  REUTERS/Lindsay DeDario/File Photo

The company is already facing one activist investor with Elliott Investment Management currently engaging in discussions with the company, sources have said. Elliott often negotiates with companies and ends up putting representatives on the board.

Starboard and Elliott have previously ended up invested in the same stock at eBay (NASDAQ:EBAY), Salesforce (NYSE:CRM) and most recently at Match Group (NASDAQ:MTCH).

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