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As activist investors loom, what’s next for Box? – TechCrunch

box May be facing When in trouble Reuters story last week It’s accurate.Activist Investor Starboard Value Acquired a 7.9% stake in a storage company September 2019, and I took three board seats a year ago As your involvement in cloud companies grows. It was only a matter of time before another shoe fell off.

Activist investors’ Starboard Value is reported to have increased by three more seats on the board.

The starboard is reportedly behind three additional board sheets, so the thunk you’ve just heard is a shoe. Among them are current CEO Aaron Levie and two independent board members, all of whom have won seats for the June elections. If the company wins three more seats, it can dominate 6 of the 9 votes and win the Box.

Given this development, what is the future of the company (assuming it is true)? It seems that the Box has been changed.

Below, we’ll explore how Box reached this point. And if the acquisition is Box’s future, who will enter the market for cloud-native content management companies built to scale within the enterprise? It is very likely that you have multiple suitors.

The whimsical economic fate of the box

The starboard side may have a reason to be dissatisfied with the performance of the box. Cloud company stocks and market capitalization remain stubbornly low. Its share price is about $ 18 per share, not much higher than the price. Published in 2015 When valued at $ 14 per share. Today’s market capitalization is $ 3 billion, which is in short supply compared to cloud buddies like Dropbox at $ 9 billion, Slack at $ 23 billion, and Okta at $ 34 billion.

Remember in March 2014 Box announced that it will be released?? Then it did something very unusual, Delay the certificate by 10 months Until January 2015. For some reason, the company was unable to trigger and do it. Perhaps it was a sign.

instead of, Box has raised another $ 150 million After receiving the S-1 filing Slow response from the market.. In retrospect, the 2014 SaaS model was less well known than it is today. Indeed, public investors are more sympathetic to software companies that are in the red in the name of growth.

However, it received a strong welcome when Box resubmitted and finally reached a price of $ 14 per share in 2015.The company was priced beyond the $ 11 to $ 13 IPO range per share As TechCrunch reported at the time And immediately shot high. Written on IPO day Cloud companies quickly “surged to over $ 20 per share, [was then] It is trading at $ 23.67. “

A year later, our ongoing coverage Stock price stopped at $ 10 January 2016.

When growth does not come

As activist investors loom, what’s next for Box? – TechCrunch Source link As activist investors loom, what’s next for Box? – TechCrunch

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