After the deal, analyst David Joyce of Miller Tabak keyed in on the progress the company was making in building some media brands, while UBS analyst Brian Pitz noted that other assets remain under-appreciated by investors. With what Pitz estimates will likely be $10 in cash as a result of the deal, the company also has new money to invest in growth.
Starboard Value targets small cap companies -- usually smaller than AOL -- that are struggling to grow their earnings as their core cash generating businesses mature. Smith says the big challenge is for management to figure out how to use the remaining value of a declining core business to invest in new opportunities that will grow earnings over time. Though Starboard-invested companies oftentimes find their way on their own, Smith says he's ready to be an activist on every investment. "For every investment we make, we have the ability to run a proxy campaign." After patent sale, Starboard still plans to pursue the election of new board members at AOL's annual meeting.
When investing in Barnes & Noble, Jana felt share prices gave little to no value to its promising Nook unit, mirroring the sentiment of other investors and analysts.
"When we invested, the market was ascribing no value to the Nook business, which was absurd," said Jana Partners founder Rosenstein in a Monday statement. The fund is known for its large-cap and discreet activist campaigns in the planned split up of
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