Starboard’s Smith Says TripAdvisor Should Consider Selling Its Restaurant-Booking Platform — or Even the Entire Company

Jeff Smith, CEO of activist investment firm Starboard Value, said on Tuesday that TripAdvisor (TRIP.O) should consider selling its restaurant-reservation platform, TheFork, and potentially even the entire company.

Speaking at the annual 13D Monitor Active-Passive Investment Summit in New York, Smith called TripAdvisor “an incredible brand” but noted that there is “a tremendous opportunity to rethink and improve the user experience to drive stronger revenue growth.”

TripAdvisor allows customers to search for and review hotels, while its Viator division enables users to book and rate tours and other travel experiences. TheFork serves as the company’s restaurant booking platform.

“We believe TheFork, which is the easiest and least integrated of the three businesses, could be sold at an attractive multiple,” Smith said. “And there could even be an opportunity to sell the entire company.”

He added, “Each of TripAdvisor’s three businesses has standalone value creation opportunities, along with the possibility of monetizing TheFork or selling the whole company.”

Starboard has been engaging with TripAdvisor for several weeks, but this was the first time Smith publicly outlined his investment thesis.

Earlier this year, Starboard built a 9% stake in the travel-booking firm and has been pushing for strategic changes.

“TripAdvisor is very cheap for a growing company,” Smith said, arguing that the business remains undervalued relative to its potential.

He also noted that Viator’s performance should improve significantly, given that the tours and experiences segment is one of the fastest-growing areas in the travel industry.

To transform TripAdvisor, Smith emphasized that there are “substantial cost-saving opportunities within the TripAdvisor brand, particularly if revenue growth doesn’t accelerate.”