Starboard Value launches bid to shuffle Symantec board
Activist hedge fund Starboard Value has launched a push to remake the board of Symantec (SYMC). This move comes after the fund recently bought a stake of 5.8% in Symantec, the maker of Norton AntiVirus software. As part of the push to shuffle Symantec’s board, Starboard Value has nominated five representatives for board seats at Symantec.
Starboard Value’s nominees to the Symantec board include directors at semiconductor companies Advanced Micro Devices (AMD) and Marvell Technology (MRVL). AMD and Marvell grew their respective revenues by 52.6% and 6.6% YoY (year-over-year) in the latest quarter.
Pushing for operational changes
Starboard Value hopes to shake up Symantec’s board, which could allow it to push for operational changes and improved performance by the company. Symantec’s revenues dropped 1.6% YoY, resulting in a $63.0 million loss in the June quarter.
Starboard Value has a reputation for taking positions and pushing for changes at companies it believes are undervalued. Starboard noted that it wants to unlock value in Symantec.
Web.com largest new position
Regulatory filings cited by Reuters show that Web.com Group (WEB) was Starboard Value’s largest new position in the second quarter. The fund cut its positions by around half in several companies, including Newell Brands (NWL) and Macerich (MAC), in the second quarter.
Web.com’s revenues were flat from a year ago, but its revenues fell 22.8% YoY to $6.2 million in the June quarter.