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Box Pushes Back, Says Starboard’s Changes are Unwarranted

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.

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