{ "docId": "019dd923-622b-71dc-a6da-20e710622d80", "docSlug": "0ffe179c4c4e", "documentTitle": "Box, Inc. (BOX)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2021-08-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 90, "pageCount": 184, "prevPage": 89, "nextPage": 91, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 3, "notes": "Uses a callout box to present the company's own justification, which is then framed as a self-serving action.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-20e710622d80/90", "deckHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80#slide-90", "components": [ { "bbox": { "h": 0.2, "w": 0.7, "x": 0.15, "y": 0.65 }, "kind": "callout", "text": "Company Commentary: \"The transaction provides the ability for stockholders to elect to either monetize their investment or participate in any upside potential with KKR as a committed partner that believes in the growth strategy that the Box Board and management team are executing.\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ae90057-4cf6-4400-9922-33670665dcac", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "The self-tender was a self-serving attempt to improve Box’s chances of winning a contested election", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ee-7118-8714-4826bda7a74c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.22 }, "kind": "list", "text": "Box originally intended to issue preferred equity to investors legally bound to vote in accordance with the Board’s recommendations, while using the proceeds from the financing to repurchase shares from common stockholders who could vote freely.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f054970-e28b-48e3-b4ed-2256e56a90fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.32 }, "kind": "list", "text": "In other words, it allowed the Company to offer a premium to frustrated investors, who were likely to be supportive of changing the status quo.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2ed0c102-e0f2-4b56-a79b-4898ca790687", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.52 }, "kind": "list", "text": "In fact, Box ultimately repurchased $238 million of stock at $25.75 per share, which we believe was an artificially inflated price. Box’s stock price has since returned to $24.39, indicating that Box may have overpaid and wasted stockholder capital.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b00e55a2-6a47-4b98-a1a2-a83d4799dbfa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.15 }, "kind": "paragraph", "text": "We believe it is clear Box executed the Preferred Financing to change the composition of the stockholder base to be more in its favor in the midst of a potential election contest.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "44e59ac1-0d46-45e8-b146-e83a375b5d80", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“The transaction provides the ability for stockholders to elect to either monetize their investment or participate in any upside potential with KKR as a committed partner that believes in the growth strategy that the Box Board and management team are executing.” — Company Issued Press Release, May 2021", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ee-7118-8714-4f9795524b6a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Company press release, Company filings, Bloomberg. Note: Market data as of 8/4/21.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9cd3cf94-9983-4cbd-aec9-114efe6a53dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.9 }, "kind": "title", "text": "The self-tender was a self-serving attempt to improve Box’s chances of winning a contested election", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5008e8e0-0b28-47d9-8a19-6e39ee553c91", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Box Used the Preferred Financing and Self-Tender Scheme to Create a More Friendly Stockholder Base", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "17d0f7fd-e360-4fcd-abe1-0168780a6b65", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "a073801c-1c05-476a-8a9a-24303d085a07", "evidence": "Contrasts company press release quote with activist's interpretation of the transaction's intent.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }