Yahoo Finance Live checks out shares of Yelp as the company's activist investor seeks to explore a potential sale.
Video Transcript
- Let's also talk about shares of Yelp here on the day. Yelp shares are surging this morning after activist investor TCS Capital Management confirmed reports that it's built a stake of more than 4% in the company. And it's asking Yelp to explore strategic alternatives, including a sale. Shares of Yelp are up by about 10% right now.
I don't have much nice to say about Yelp. I always have a terrible user experience on there. Just bounces me back to the app every time. But anyway, that aside, clearly, a lot of investors also want to see a larger parent company come in, take over Yelp, perhaps optimize or at least put some synergies or efficiencies within the business. And it's a larger question of to, where AI could play a role within Yelp for suggestions, for recommendations, driving even more of those touch points, perhaps combing through some of the reviews that make it through there as well.
So I think there is a reimaging that could take place at Yelp. But it'll be interesting to see if this activist campaign [INAUDIBLE].
- Well, bottom line, they want them to be bought. They want somebody else to buy them and do all of that. And whether it's another external company, they talk about Angi, the parent of Angi's List as a potential buyer. Tax-free merger is what they're talking about there. But also TCS Capital saying, we could come in and do the deal ourselves, if nobody else is going to do it. So watching shares of Angi, which are little changed today.
