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Key Takeaways
- Online marketplace Etsy Inc. said Thursday that it had appointed Elliott Investment Management partner Marc Steinberg to its board.
- The move came after Elliott became a “sizable investor” in the online marketplace. CNBC reported that the firm now holds a 13% stake in the company.
- Shares of Etsy rose Thursday on the news but remained squarely in negative territory over the past year.
Etsy Inc. (ETSY) shares took off Thursday as the online marketplace appointed a partner from Elliott Investment Management to its board after the activist investor took a major position in the firm.
The company announced that Marc Steinberg would take his seat next Monday. Steinberg will also join the board’s audit committee.
Elliott has built about a 13% stake in Etsy, which would make it the company’s largest shareholder, according to people familiar with the matter cited by CNBC.
Steinberg confirmed in a press release that his firm “became a sizable investor in Etsy,” adding that he was joining the board “because I believe there is an opportunity for significant value creation.”
Etsy Chairman Fred Wilson said the appointment “reflects our ongoing commitment to enhance the perspectives and expertise” on the board.
Steinberg currently sits on the board of image-sharing website Pinterest Inc. (PINS), as well as three private companies.
Etsy shares, despite rising 8% to $71.84 at 2:20 p.m. ET on Thursday, have lost nearly half their value over the past year.
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