Activist Investor Starboard Buys 50% More Salesforce Stock : Wiola Balicka
by: Wiola Balicka
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### Summary of Content An activist investor hedge fund named Starboard Value has increased its stake in Salesforce by acquiring 50% more shares after a significant drop in the company's stock price. As of June 30, Starboard owned 1.3 million shares, up from about 849,679 shares at the end of the first quarter. Salesforce is currently valued at $223 billion, but its stock has fallen nearly 30% over the past six months. Three years ago, Salesforce faced pressure from multiple activist investors, including Starboard, who demanded improvements in profitability and operational efficiency. Some of these investors sold their stakes after Salesforce showed better-than-expected results and made board changes. However, Starboard's renewed investment suggests that they may be returning to push for more changes, reminiscent of 2022's investor activism environment. Despite a nearly 100% increase in Salesforce's stock in 2023, Starboard's CEO, Jeffrey Smith, believes there are still opportunities for Salesforce to enhance efficiency and profitability. Additionally, Starboard has recently increased its holdings in Pfizer, indicating a broader strategy of engaging with companies to improve performance. Salesforce may face another challenging period with activist investors as Starboard leverages the current drop in stock prices. The outcome of this renewed interest could have significant implications for the company. ### Key Details - Starboard Value increased its stake in Salesforce by 50%. - Current ownership: 1.3 million shares. - Salesforce's stock has dropped nearly 30% in six months, with a market cap of $223 billion. - Three years ago, Salesforce was under pressure from several activist investors. - Starboard's return indicates potential renewed conflict. - Previous improvements led to some investors selling their stakes, but Starboard continues to advocate for efficiency. ### Additional Context Investor activism can significantly influence a company's operational strategies and governance. Activist investors often push for changes to enhance shareholder value, which can lead to conflicts but also improvements in company performance. Salesforce’s history with activist investors suggests that ongoing scrutiny may continue to affect its strategic decisions. ### Hashtags for SEO #Salesforce #ActivistInvestors #StarboardValue #StockMarket #InvestorRelations #BusinessStrategy #MarketTrends #FinanceNews #CloudComputing #CorporateGovernance
An activist investor hedge fund, which publicly pushed for Salesforce to make a number of changes three years ago, has bought 50% more CRM stock amid a sharp dip in its value.
Starboard Value had reported owning 849,679 shares in the cloud giant at the end of Q1, but that figure stood at 1.3M shares by June 30, according to a regulatory filing on Thursday.
Salesforce, which has a market cap of $223B, has recently suffered a sharp drop in stock price – which has fallen by nearly 30% in six months.
Activist Investors: Are We Reliving 2022?
Three years ago, Salesforce came under intense pressure from a number of activist investors. Salesforce Ben reported on this at the time.
Third Point, ValueAct, Inclusive Capital, Elliot Management, and Starboard Value started pushing for better margins and operational efficiency, compelling Salesforce to rethink many of its growth strategies.
But many who publicly demanded changes cut their stakes or exited completely by mid-2023 after the cloud giant reported better results and brought in a new director to the board, amid other changes.
The return of Starboard – which has a reputation to revisit previous investments if a company is seen as backsliding on promises – means we may be returning to the combative zeitgeist of 2022.
Salesforce’s stock price increased by nearly 100% in 2023, but the Chief Executive of Starboard, Jeffrey Smith, said in 2024 that the company could still be made to be more efficient and profitable.
Starboard also boosted its holding in Pfizer by 10.5% to 8.5M shares, less than one year after unveiling a $1B stake in the company and pushing for it to improve performance, Reuters reports.
Salesforce Ben has contacted Starboard for comment.
Final Thoughts
Salesforce will likely not be thrilled at the prospect of another public battle with activist investors – and extra salt is arguably already in the wound due to the fact that Starboard is taking advantage of a significant drop in stock price.
But Salesforce survived the first battle three years ago. We shall be watching to see if this stock purchase leads to a reliving of 2022 – and if it does, what implications it has for the ecosystem.
The post Activist Investor Starboard Buys 50% More Salesforce Stock appeared first on Salesforce Ben.
August 15, 2025 at 05:06PM
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