Box Pushes Back, Says Starboard’s Changes are Unwarranted

Share post:

Box continues to resist pressure from investors at hedge fund Starboard Value LP, who are displeased that the cloud storage company has failed to capitalize aggressively on corporate trends due to the ongoing pandemic.

In a statement released earlier this week, Box said Starboard’s offer to add members to Box’s board was unwarranted given recent growth trends and the $500 million in investment it has received from KKR.

Box is in the midst of a period of transition and growth aimed at positioning the company as a cloud layer for content management by integrating with recording systems in the company. In fiscal 2021, the company saw an 11% increase in revenue to $771 million – a significant jump from the previous year.

Nevertheless, Starboard is increasing the pressure on Box and positioning itself for a takeover of the board with the aim of taking over Box. Contrary to these efforts, Box wants to be an independent company.

In a statement, Box said it was prepared to seize a $55 billion market opportunity and forecast revenue growth of 12 to 16% and operating margins of 23 to 27% by 2024.

For more information, read the original story on Zdnet.

SUBSCRIBE NOW

Related articles

Kaspersky to shut down its US business due to sanctions

Russian cybersecurity firm Kaspersky Lab announced it will cease its U.S. operations starting July 20, following sanctions from...

Intuit lays off 1,800 people amid a shift to AI

Intuit, the company behind QuickBooks, Credit Karma, and TurboTax, is laying off 1,800 employees, which is about 10%...

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways