Investor TCS Capital calls on Yelp to explore sale or merger with Angi (updated)

Angi

23/05/2023 12:34

(Adds details from investor letter in paragraph 3 and 4, Yelp
response in paragraph 6)
       May 23 (Reuters) - Activist investor TCS Capital
Management on Tuesday urged Yelp Inc  YELP.N  to either explore
a sale or a merger with online-services company Angi Inc
 ANGI.O , sending shares of the service-recommendation site 10%
higher in premarket trading.
    TCS Capital, which is one of Yelp's top shareholders with a
stake of more than 4%, said the company was "shockingly
undervalued."
    "As a former board member and longtime investor in ANGI, I
believe that a Yelp and ANGI combination would yield enormous
revenue synergies and cost savings that could ultimately double
the value of Yelp's shares," said Eric Semler, TCS Capital's
founder wrote in a letter.
    Alternatively, Semler suggested that Yelp could be sold for
at least $70 per share, or more than double the current stock
price.
    Shares of Yelp were up at $36.03 in premarket trading on
Tuesday.
    A Yelp spokesperson said the company "maintains an active
dialogue with our shareholders and values constructive feedback
on our business and ways to create value."
    Angi did not immediately respond to a request for comment.
    

 (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Rashmi Aich and Shinjini Ganguli)
 ((Samrhitha.A@thomsonreuters.com))