Yelp Inc. shares surged about 14% in after-hours trading Monday after the Wall Street Journal reported an activist investor is calling on the company to consider selling to boost its value.
The Journal late Monday reported TCS Capital Management has a roughly 4% stake in Yelp
YELP,
making it one of the online-review company’s five largest shareholders, and is urging Yelp to consider strategic alternatives, including a sale.
TCS Capital believes Yelp could be sold for at least $70 a share, about double its current valuation, the Journal reported, citing a letter from TCS that it saw and which is scheduled to be delivered to Yelp’s board Tuesday.
Among the alternatives it will propose is a takeover by TCS Capital or a merger with Angi Inc.
ANGI,
formerly known as Angie’s List, according to the report.
TCS Capital founder and President Eric Semler said combining Yelp and Angi could result in significant cost savings, and sharply criticized Yelp co-founder and CEO Jeremy Stoppelman’s compensation package, the Journal reported.
Yelp reported better-than-expected quarterly revenue and earnings estimates earlier this month, and raised its full-year sales outlook.
Yelp shares have rallied 19% year to date, and are up about 14% higher over the past 12 months, compared to the S&P 500’s
SPX,
9% gain in 2023 and 5.5% advance over the past year.
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