Etsy Sellers Market in Times Square celebrating Etsy’s celebration going IPO at Nasdaq on April 16, 2015 in New York City.
Paul Zimmerman | Getty Images
Activist investor Elliott Management has a “sizable” investment in e-commerce firm Etsy, which announced on Thursday that Elliott partner Marc Steinberg would join the company’s board.
The activist investor has built a roughly 13% position in the stock, a person familiar with the matter told CNBC.
“I am looking forward to working with the Board and supporting Josh and the team as they execute on initiatives to improve the customer experience, accelerate top- and bottom-line growth, and drive long-term value,” Steinberg said in a release.
Etsy shares shot up more than 10% on the news. Elliott and Etsy have been meeting for a few months, CNBC’s David Faber said. Still, the e-commerce company’s stock is down about 10% year-to-date.
Etsy CEO Josh Silverman said the firm was “excited” to welcome Steinberg to the board.
Elliott has a successful track record at myriad companies and is one of the largest activist investors, managing about $59 billion in assets as of June 2023. It is also engaged in campaigns at Match Group, Philips 66, and Crown Castle, and has previously led campaigns at Salesforce, Pinterest, and Dropbox.
The opening months of any year most often see significant activist activity, as many companies nominating deadlines near.
Founded in 2005, Etsy is an online marketplace that made its name as a platform for artisanal and handmade goods made by small businesses. It competes with e-commerce companies including Amazon, which has its own handcrafted products platform.
Etsy was one of the biggest beneficiaries of the pandemic, as stuck-at-home shoppers turned to it and other online retailers for essentials and non-essentials. But the company has struggled in recent quarters, as the pandemic-driven e-commerce boom didn’t last, and inflation-weary consumers pulled back on their spending. In December, Etsy announced it would lay off 11% of its staff, or roughly 225 employees.
This is a developing story. Please check back for updates.
