Tripadvisor shares jumped 15% after activist fund Starboard Value acquired a 9% stake, signaling renewed optimism for the travel sector’s recovery.
#YonhapInfomax #Tripadvisor #StarboardValue #StakeAcquisition #TravelSector #SharePriceSurge #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=70712

Red Lobster was killed by private equity, not Endless Shrimp
A decade ago, a hedge fund had an improbable viral comedy hit: a 294-page slide deck explaining why Olive Garden was going out of business,
blaming the failure on too many breadsticks and insufficiently salted pasta-water!
But – as David Dayen wrote at the time – the hedge fund that produced that slide deck, #StarboardValue, was not motivated by dissatisfaction with bread-sticks.
They were "activist investors" (finspeak for "rapacious assholes") 🔸with a giant stake in Darden Restaurants, Olive Garden's parent company.
They wanted Darden to liquidate all of Olive Garden's real-estate holdings
and declare a one-off dividend that would net investors a billion dollars,
while literally yanking the floor out from beneath Olive Garden,
converting it from owner to tenant, subject to rent-shocks and other nasty surprises.
In other words they wanted to asset-strip the company
("asset strip" is what they call it in hedge-fund land; the mafia calls it a "bust-out," famous to anyone who watched the twenty-third episode of The Sopranos)
@pluralistic
https://pluralistic.net/2024/05/23/spineless/#invertebrates