Starboard’s Stake in Tripadvisor: Unlocking Travel Value

Have you ever wondered what happens when a powerhouse investor spots a diamond in the rough? That’s exactly what’s unfolding with Tripadvisor, a company many of us know for its travel reviews and booking platforms. Recently, a prominent activist investor, Starboard Value, acquired a 9.01% stake in the company, sparking curiosity about how they might shake things up. In my experience, when firms like this step in, it’s a signal that undervalued potential is about to be unleashed.

Why Tripadvisor Caught Starboard’s Eye

Tripadvisor isn’t just a website you visit to check hotel reviews before a vacation. It’s a global leader in travel guidance, with three distinct segments that make it a fascinating investment case. The company’s flagship platform, Tripadvisor.com, boasts 300 million monthly visitors and over a billion reviews, generating roughly $900 million in revenue annually. Then there’s Viator, a fast-growing marketplace for tours and experiences, matching that revenue figure with double-digit growth. Lastly, TheFork, a restaurant reservation platform, is carving out a niche in Europe with $200 million in revenue and strong margins. Despite these strengths, Tripadvisor’s stock trades at a modest seven-times EBITDA, a steep discount compared to its peers.

So, what’s holding it back? For years, the company operated under a cloud of governance issues, including a dual-class share structure and controlling ownership by a media conglomerate. This setup often spooked investors, leading to a valuation that didn’t reflect the company’s true potential. But things changed dramatically in April 2025 when Tripadvisor bought back that controlling stake, leveling the playing field for shareholders. Perhaps the most intriguing aspect is how Starboard, known for its sharp focus on operational efficiency, might now steer this ship toward brighter horizons.

The Power of Activist Investing

Activist investors like Starboard don’t just buy shares and wait. They dive deep into a company’s operations, strategy, and governance to unlock hidden value. With a track record of 158 campaigns and an average return of 22.34%—outpacing the Russell 2000’s 13.18%—Starboard has a knack for spotting opportunities others miss. Their approach often involves pushing for margin improvements, restructuring, or even strategic sales, all while keeping shareholders’ interests front and center.

Activist investors are like catalysts, igniting change where complacency has settled.

– Financial analyst

In Tripadvisor’s case, Starboard’s involvement suggests they see untapped potential in the company’s trio of businesses. The question is: how will they approach it? Will they push for operational tweaks, a sale of one segment, or something bigger? Let’s explore the possibilities.

Tripadvisor’s Three-Pronged Opportunity

Tripadvisor’s structure is both its strength and its challenge. Each segment—Tripadvisor.com, Viator, and TheFork—operates independently, yet together they form a robust ecosystem for travelers. Here’s a breakdown of what each brings to the table and how Starboard might enhance their value:

• Tripadvisor.com: The core platform remains a titan in travel guidance, with $900 million in revenue and $250 million in EBITDA. Despite a 7.95% revenue dip from 2023 to 2024, the company expects growth to rebound. Starboard could push for cost optimization to boost margins without sacrificing user experience.
• Viator: This segment is the growth engine, matching Tripadvisor’s revenue but expanding at double-digit rates. Its marketplace for over 400,000 experiences is a goldmine, and Starboard might focus on scaling it further or highlighting its value to investors.
• TheFork: With $200 million in revenue and $65 million in EBITDA, this restaurant reservation platform is a hidden gem. Its 20%+ margins at scale make it an attractive asset, potentially ripe for a strategic sale.

What’s fascinating is how these segments, while synergistic, don’t rely on each other operationally. This flexibility gives Starboard multiple levers to pull, from fine-tuning operations to exploring divestitures. I’ve always believed that companies with diverse yet strong assets are prime candidates for activist-led transformations.

Overcoming the Governance Hangover

For years, Tripadvisor’s valuation suffered due to its governance structure. A dual-class share system and concentrated ownership limited shareholder influence, reflected in the 2025 annual meeting where directors faced significant withhold votes. One director, a former media executive, saw over 60% of shareholders withhold support—a clear sign of frustration. But the April 2025 buyback of the controlling stake changed the game, dismantling the dual-class structure and signaling a new era of shareholder-friendly governance.

Starboard’s timing couldn’t be better. With governance barriers removed, the stock’s 20%+ rise year-to-date suggests the market is starting to notice. Yet, there’s likely still a lingering discount from years of control, which Starboard could help erase by pushing for transparency and accountability. In my view, this shift alone could make Tripadvisor a more attractive investment.

Strategic Options: From Growth to Sales

Starboard’s playbook is versatile, and Tripadvisor offers plenty of paths to value creation. Here are the key strategies they might pursue:

1. Status Quo with a Twist: If Tripadvisor’s core business returns to growth and Viator and TheFork keep scaling, Starboard might simply advocate for better market communication. Highlighting the sum-of-the-parts value could lift the stock without major changes.
2. Operational Overhaul: If growth stalls, Starboard could push for a focus on profitability over revenue. This might involve trimming costs in the core platform or optimizing Viator’s expansion strategy.
3. Strategic Divestitures: TheFork, with its $200 million revenue and high margins, could fetch a $1 billion valuation—nearly 40% of Tripadvisor’s enterprise value. Recent acquisitions in the restaurant reservation space suggest strong buyer interest.
4. AI Potential: Tripadvisor’s 25-year data trove, with billions of reviews and user interactions, is a goldmine for AI applications. Partnerships with AI firms hint at untapped value, which Starboard could help monetize.

The idea of selling TheFork is particularly intriguing. With deals like Resy to Amex or OpenTable to Booking Holdings fetching high multiples, a similar move could unlock significant value. However, Starboard rarely pushes for outright sales unless the math makes sense, so this might be a long shot.

Data is the new oil, and Tripadvisor’s user insights could fuel the next wave of travel innovation.

– Tech industry observer

Could a Full Sale Be on the Horizon?

While Starboard isn’t known for pushing companies to sell, their involvement often puts firms “in play.” Tripadvisor has already fielded acquisition interest, with bids surfacing in 2024 and early 2025 at $18–$19 per share. With Q1 2025 results exceeding expectations and guidance improving, the company’s appeal to strategic buyers is stronger than ever. A full sale isn’t Starboard’s primary goal, but if a compelling offer emerges, they’d likely encourage the board to consider it for shareholders’ benefit.

Here’s a quick look at why Tripadvisor might attract buyers:

The combination of a market-leading brand, a high-growth segment, and a valuable niche platform makes Tripadvisor a unique asset. I can’t help but think a strategic buyer might see this as a rare opportunity to dominate the travel space.

The Role of Shareholder Sentiment

Shareholder unrest at Tripadvisor’s 2025 annual meeting was hard to ignore. Three directors faced withhold votes of 45% or more, signaling dissatisfaction with the status quo. While governance reforms have addressed some concerns, Starboard’s presence could amplify shareholder voices. They might push for board representation to ensure alignment with investor interests, though a proxy fight seems unlikely given the company’s recent changes.

In my opinion, Starboard’s collaborative approach could turn this discontent into a positive force. By working with the board, they can focus on value-accretive strategies rather than confrontation, potentially transforming Tripadvisor into a market darling.

What’s Next for Tripadvisor?

As Starboard engages with Tripadvisor’s management, the travel industry is watching closely. Will they unlock value through operational tweaks, a segment sale, or by leveraging the company’s AI potential? Or could a full acquisition be the ultimate outcome? One thing’s certain: with Starboard’s track record and Tripadvisor’s assets, the potential for a stock surge is real.

Here’s what to watch for:

• Earnings Reports: Will Tripadvisor’s core platform return to growth as projected?
• Strategic Moves: Any signs of divestitures or AI partnerships could signal Starboard’s influence.
• Market Perception: As governance improves, will the market finally recognize Tripadvisor’s true value?

In the end, Starboard’s stake in Tripadvisor is more than just a headline—it’s a chance to redefine a travel giant. I’m excited to see how this unfolds, and if history is any guide, shareholders might be in for a rewarding ride.