Starboard Value investment in Tessera Technologies in 2013

Starboard Value invested in Tessera Technologies in 2013 and made public a presentation for it. If you are interested to learn about how hedge funds write presentations, here is one for you to learn from.

About the Starboard Value deck

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About the deal

In 2013, Starboard Value, an activist investment firm known for its involvement in corporate governance and operational efficiency improvements in its portfolio companies, took a significant position in Tessera Technologies, a company specializing in licensing intellectual property related to semiconductor packaging and miniaturization technology. Starboard’s investment strategy often involves taking an active role in companies it perceives to be undervalued or poorly managed, and Tessera was no exception.

Starboard argued that Tessera was underperforming due to operational inefficiencies and a misalignment of corporate strategy. They believed that Tessera’s management was not effectively capitalizing on its intellectual property portfolio and that there were significant opportunities for cost reduction and strategic realignment to enhance shareholder value.

As part of its investment, Starboard sought changes in Tessera’s board of directors and management team, and pushed for strategic shifts that included focusing on core areas of intellectual property licensing, cost-cutting measures, and exploring strategic alternatives for non-core business segments. Starboard’s involvement led to a notable shake-up in Tessera’s corporate governance and strategic direction, aiming to unlock value for shareholders through operational improvements and a renewed focus on its core competencies.

About Starboard Value

Starboard Value stands out as a prominent activist hedge fund founded in 2002 by Jeffrey C. Smith, Mark R. Mitchell, and Peter A. Feld. Renowned for its bold investment strategies, the company targets underperforming or undervalued public companies, leveraging its significant stake to advocate for changes aimed at enhancing shareholder value. Through meticulous research and detailed analysis, Starboard identifies areas for operational improvements and shifts in corporate governance, catalyzing campaigns that often result in significant transformations within target companies.

With a history of high-profile engagements spanning diverse industries such as technology, retail, hospitality, and healthcare, Starboard Value has earned a reputation as a leading force in activist investing. Notable campaigns with companies like Darden Restaurants, Yahoo (now part of Verizon), and Perrigo Company demonstrate the firm’s knack for driving meaningful changes in corporate strategy, governance practices, and operational efficiency. By installing its own nominees on target company boards and influencing key decisions, Starboard has consistently demonstrated its ability to unlock value and deliver returns for its investors through its proactive and assertive approach.

About Tessera Technologies

Tessera Technologies, Inc., now known as Xperi Holding Corporation, is a global technology company headquartered in San Jose, California, United States. Founded in 1990, Tessera Technologies specialized in developing and licensing miniaturization technologies for semiconductor packaging, imaging and optics, and other industries. The company’s intellectual property portfolio included innovations in semiconductor packaging, semiconductor interconnect technology, and imaging and optics solutions. Tessera’s technologies were widely used in various consumer electronics devices, including smartphones, tablets, digital cameras, and wearables. In 2017, Tessera Technologies merged with DTS, Inc., a provider of audio solutions, to form Xperi Corporation. The combined company, now known as Xperi Holding Corporation, continues to focus on licensing and developing innovative technologies for various industries, including semiconductor, automotive, entertainment, and mobile communications. Through its continued commitment to innovation and intellectual property licensing, Xperi Holding Corporation remains a key player in the technology licensing and development landscape.

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