Yelp shares jumped by double digits in pre-market trading on Tuesday after activist investor TCS Capital Management called for the service-recommendation platform to consider strategic alternatives, including a sale.
Per a report by The Wall Street Journal citing a letter set to be delivered to Yelp’s board on Tuesday by TCS president Eric Semler, the firm believes Yelp could be sold to another company or a private equity buyer for at least $70 a share.
This would be almost double its share price just ahead of the opening bell on Tuesday at $36.07, up 10.9% from the close on Monday.
TCS owns more than 4% of Yelp’s shares making it one of the company’s five largest shareholders, according to the report.
“Yelp maintains an active dialogue with our shareholders and values constructive feedback on our business and ways to create value,” a Yelp spokesperson told the WSJ.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie