Starboard said to have taken stake in Salesforce, shares jump
Salesforce.com Inc.
€324.15
15:40 22/11/24
Salesforce shares rallied on Tuesday on a report that New York-based hedge fund Starboard Value has taken a stake in the cloud-based software company.
According to CNBC’s David Faber, Starboard founder Jeff Smith has said that "significant opportunity" remains in Salesforce.
Smith told Faber the stake was significant, without specifying the amount.
The hedge fund manager said the valuation discount in Salesforce shares right now is largely due to a "subpar mix of growth and profitability", according to CNBC. Smith added that the company is not generating meaningful operating leverage relative to peers in recent years.
"Salesforce is ingrained in the fabric of so many companies and has become so important in the way they operate and conduct businesses," Smith told Faber in an interview, saying that he would like to be a long-term investor in the company.
It was also reported that Starboard has built a new stake in software firm Splunk, amid expectations it could be a takeover target.
At 1538 BST, Salesforce shares were up 5% at $154.53.