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

Box Can be faced Upset times if A Reuters story from last week correct. Activist Investor Starboard Price Took a 7.9% stake in the storage company In September 2019, and Took three board seats a year ago Its involvement in the cloud company deepened. This was just before another shoe was dropped.

Activist investor Starboard Value is reportedly followed by three additional board seats.

You just heard that thunk because the shoe can be told after three seats on the extra board. These include current CEO Aaron Levy and two independent members of the board, all of whose seats are coming up for election in June. If the firm receives three additional seats, it will control six of the nine votes and can make its way with the box.

Given this development, what could happen in the future for the company (this is true)? Looks like changes are coming for the box.

Below, we’ll find out how the box reached this point. And if an acquisition is in the future of the box, who can be in the market for a cloud-native content management company built on an enterprise scale? Very likely there will be many suitors.

The fickle financial fate of the box

There may be reason to be disappointed with the performance of the box in Starboard. Cloud Company’s share price and market cap were very low. Its share price is priced around $ 18 per share, not much higher than the price It went public in 2015 When it was valued at $ 14 per share. Its market cap today is $ 3 billion, a decrease of $ 9 billion, slack $ 23 billion, or octa $ 34 billion, compared to fellow cloud stalwarts such as Dropbox.

Remember back in march 2014 Box announced that it was going publicThe It did some unusual work then, 10 month delay As of January 2015, one thing or another kept the company from pulling the trigger and just doing it. Maybe it was a sign.

Instead, Box raised $ 150 million more After its S-1 filing A great response from the market. Looking back, you can argue that the SaaS model was less well-known than 2014, as it is today. Certainly public investors are more sympathetic to software companies that run losses in the name of growth than they were back then.

But when the box re-filed, finally priced at $ 14 per share in 2015, it received a strong reception. The company had priced it above the IPO range of $ 11 to $ 13 per share. As stated by TechCrunch at the time And shot high immediately. We wrote on its IPO day Cloud Company quickly soared “more than $ 20 a share [was then] Trade at $ 23.67. “

A year later, our continued coverage flipped along Share price stuck at $ 10 In January 2016.

When there will be no development