Etsy shares surge after hedge funds urge ‘strategic alternatives’

on May17

An employee walks past a quilt displaying Etsy signage at the company's headquarters in Brooklyn, New York.

Victor J. Blue | Bloomberg | Getty Images

An employee walks past a quilt displaying Etsy signage at the company’s headquarters in Brooklyn, New York.

Etsy shares are surging Tuesday after two private equity firms disclosed ownership in the online crafts site, requesting it consider strategic alternatives.

In separate filings with the Securities and Exchange Commission Monday evening, TPG Group Holdings reported a 4.3 percent stake in Etsy, while Dragoneer Investment Group said it now has 3.7 percent ownership.

Etsy’s stock surged more than 19 percent Tuesday on this news.

Both firms are saying they’ve asked Etsy “to engage in discussions regarding strategic alternatives.”

In response to the filings, Etsy Chairman Fred Wilson said in a statement the company’s board will “carefully consider all options to enhance shareholder value.”

Etsy CEO Josh Silverman wrote: “We are now reviewing our strategic and operational plans to ensure Etsy is focused on the most value-enhancing near- and long-term opportunities. We will prudently invest in areas that will deliver the greatest returns. At the same time, we see significant opportunities to scale our marketplace business model and drive efficiencies. … We look forward to providing additional details when our review is completed.”

Silverman, formerly at eBay, was just appointed CEO at Etsy two weeks ago, taking the reins from Chad Dickerson, who stepped down after nine years with the company.

The Brooklyn-based online retailer was also recently urged by activist hedge fund Black & White Capital, which owns about 2 percent of Etsy, to explore a potential sale.

Dragoneer, an early investor in Etsy, has worked with TPG before, including in its investment in music-streaming service Spotify.

As of Tuesday’s close, shares of Etsy have climbed more than 16 percent for the year-to-date period and are up more than 59 percent over the past 12 months.

Previous postHow a bistro in Beverly Hills makes some of the best fried chicken in Los Angeles Next postNvidia beats Intel in Toyota self-driving battle

Leave a Reply

Your email address will not be published. Required fields are marked *

Los Angeles Financial times

Copyright © 2021 Los Angeles Financial times

Updates via RSS
or Email