A 'strong-arm' investor with 7 billion yuan storms Pfizer—will its global CEO be ousted?

Interestingly, Starboard Value appears to have resolved to drive reform: it has recruited Pfizer’s former CEO and former CFO to help steer the pharmaceutical giant out of its slump. Starboard believes that under current CEO Albert Bourla, Pfizer’s once-disciplined and rational cost structure and M&A strategy have steadily deteriorated—even collapsing altogether—and that the massive acquisitions made over the past two years have delivered poor returns. According to the Financial Times (UK), some of Pfizer’s existing shareholders have listened to Starboard Value’s proposal for strategic transformation, supporting a ‘restructuring’ and backing the replacement of current CEO Albert Bourla. Industry dynamics shift rapidly. Three years ago, amid the surge in demand for COVID-19 products, Pfizer reaped hundreds of billions in revenue and solidified its position as the ‘world’s largest pharmaceutical company.’ Newly appointed CEO Albert Bourla was red-hot on Wall Street. Yet everyone knows what Pfizer has endured over the past three years: lukewarm product reception, unmet financial targets, unrecovered R&D investments, and repeated setbacks in both stubbornly pursued and newly bet-on drug development programs—ultimately leaving Bourla unable to escape mounting debts and relentless scrutiny. This high-profile intervention by activist capital—bolstered by the enlistment of Pfizer’s former CEO and CFO—has undoubtedly served as a wake-up call for the transforming pharma giant: ‘It’s time to adjust strategy urgently—otherwise, steering this massive ship will become untenable.’ Has the ‘strong-arm’ investor’s entry marked a turning point for Pfizer? The influence of activist investors on corporate reform is growing steadily. Investment bank Lazard recently released a report showing that since 2023, hundreds of new activist campaigns have been launched globally—a record high. Among them, the hedge fund Starboard Value ranks among Wall Street’s most feared activist investment firms, boasting an impressive track record since its inception. Founded by Jeff Smith, Starboard Value adopts an assertive style. Its typical investment strategy involves acquiring a stake in a company and then pressuring management and the board to implement strategic adjustments, cut costs, pursue mergers or divestitures, and enact reforms—all aimed at optimizing operational efficiency and enhancing value to deliver higher returns to shareholders. Since its founding in 2011, Starboard Value has achieved success across multiple investments and holds significant stakes in several well-known companies—including Darden Restaurants, Yahoo, Monsanto, and Walmart. In 2013, Starboard Value acquired a stake of less than 10% in U.S. full-service restaurant chain Darden Restaurants, yet successfully pushed for the replacement of several board members. In 2018, it made a major investment in U.S. generic drugmaker Mylan, successfully driving strategic transformation and improved market performance. In 2022, Starboard invested in software giant Salesforce, prompting it to lift profitability—its stock price doubled over two years. More recently, Starboard invested in Starbucks; under pressure from Starboard and others, Starbucks replaced its CEO in August.

Activist shareholders nominate directors to force eBay to spin off or sell $20 billion in assets.

Note from Lieyunwang: According to sources cited on Wednesday, U.S.-based activist investment firm Starboard Value has nominated a slate of director candidates to reshape eBay’s board—thereby pressuring the company to proceed with its planned asset spin-offs and sales. Source: Tencent Technology; Editor: Cheng Xi. In the U.S. tech market, activist investment firms wield formidable influence: they acquire large stakes in tech companies, overhaul boards, and demand major business reforms—or asset spin-offs and sales—to maximize shareholder value. For instance, the prominent U.S. activist firm Elliott Management recently forced Twitter’s CEO to step down. According to recent foreign media reports, another major U.S. internet company, eBay, has recently come under siege by an activist investor. Sources revealed on Wednesday that Starboard Value has nominated a slate of director candidates to reshape eBay’s board composition—thus compelling the company to advance its next phase of spin-off and divestiture plans. As reported by international media, if eBay fails to meet Starboard’s demands and no settlement is reached, Starboard intends to submit these nominated director candidates for election by shareholders at eBay’s annual general meeting in June. To date, neither eBay nor Starboard Value has responded immediately to requests for comment from foreign media. Last year, Starboard announced it had acquired a 1% stake in eBay and leveled several criticisms at eBay’s management—including sluggish business growth, slow decision-making, and the drag on operational efficiency caused by numerous non-core businesses unrelated to e-commerce. Starboard contends that divesting these businesses would best serve shareholder interests. The number of new director nominees put forward by Starboard—and their identities—remain unknown. Today, numerous tech companies face pressure from activist investors. This week, for example, Twitter and Elliott Management reached a settlement: Twitter secured a $1 billion investment from Silver Lake, and granted board seats to both Elliott and Silver Lake. Twitter CEO Jack Dorsey temporarily retained his position; in return, Twitter announced a $2 billion share buyback program to boost shareholder returns. Whether Twitter will undertake further major restructuring remains unclear. According to reports, Starboard’s most critical demand is that eBay divest its classified advertising business—valued at $10 billion. While eBay’s core business is its e-commerce marketplace, over the years it has acquired several classified ad websites and also markets certain goods through those platforms. In September last year, eBay CEO Devin Wenig resigned—reportedly because he opposed the board’s decision to accede to Starboard and other investors’ demands to sell the classified advertising business. This is not the first such confrontation.

Activist Starboard Prepares to Nominate Directors at Knife River, Sources Say

14 hours ago

Activist investor Starboard Value plans to nominate directors at Knife River Corp to push for margin improvements or a sale. The construction materials firm currently reports 15% margins against a target of 22% by 2029.

reuters

2026-10-19

Activist Starboard Prepares to Nominate Directors at Knife River, Sources Say

Activist Starboard Prepares to Nominate Directors at Knife River, Sources Say

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