Shares of Yelp (NYSE:YELP) are trading almost 15% higher in pre-market Tuesday after the Wall Street Journal reported that activist investor TSC Capital Management has a stake in the service-recommendation business.
TSC amassed a stake of over 4% in Yelp to become one of the company’s five biggest shareholders, according to the report. TSC’s Founder and President Eric Semler will tell Yelp’s board on Tuesday that the company should be sold to another bigger tech company or a private-equity business.
While YELP shares closed at $32.52 yesterday, up 19% year-to-date through Monday’s close, the activist investor believes the company’s stock should be sold for at least $70 a share.
Semler will also tell the board that his hedge fund is prepared to make an offer to acquire Yelp.
“Yelp maintains an active dialogue with our shareholders and values constructive feedback on our business and ways to create value,” a Yelp spokesperson told WSJ.