What was changed
In September 2019 Starboard Value disclosed a 7.5% stake in cloud-content firm Box, saying the shares were undervalued and pressing for margin gains, board changes and even a sale. Box's stock had slid for years as growth slowed and losses persisted.
After Reuters reported Box was exploring a sale, the company ran a strategic review with Morgan Stanley. In April 2021 it announced a different outcome: KKR would lead a $500 million investment and gain a board seat, and Box would use the proceeds for a self-tender buyback — letting Starboard cash out its 7.9% stake while staying public.
Starboard fought on, seeking three board seats at the September 2021 annual meeting, but shareholders backed management, with KKR's voting rights and the buyback tilting the vote. Starboard's Peter Feld acknowledged more than 70% total shareholder returns since the September 2019 disclosure, and ISS credited the campaign for changes including separating the CEO and chairman roles.
What it achieved
KKR led a $500M investment funding a self-tender buyback, ended the strategic review, and left Box public; shareholders saw +70% returns.
Why it worked
The KKR structure gave Starboard an exit at a premium without a full sale.
A buyback funded by an investor concentrated the remaining ownership.
The deal added an experienced private-equity board member to oversee strategy.
Box retained its public-company independence and its CEO.
What can be applied
A board under activist attack can keep independence by finding a friendly investor who funds a buyback and reshapes governance, turning pressure into a new capital structure.
Aftermath
KKR's John Park joined the Box board, the self-tender closed in 2021, and Box continued as a public company. Starboard's board push was rejected in September 2021, though proxy advisers credited the campaign for governance changes and the roughly 70% run in shareholder returns.
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