Cars.com, a top online car marketplace, recently issued a statement responding to a press release from Starboard Value LP:
The Board of Directors and management team of Cars.com is committed to acting in the best interests of the Company and their stakeholders to enhance shareholder value. They share Starboard's view that they have had a constructive dialogue with them over the past year and that their Board and management team are passionate about improving the business.
Cars.com is committed to steadfastly executing our strategic plan as they seek to achieve sustainable market leadership in our sector. The acquisition of Dealer Inspire that they completed in February 2018 was a bold step to underpin our strategy to expand from a listings model to a leading online automotive marketplace with value-added digital solutions for their dealer customers. They have also rapidly converted the majority of our affiliate markets and invested in marketing that has increased traffic for 11 consecutive months and driven search engine optimization traffic growth for eight consecutive months. In addition, they have undertaken cost efficiency programs designed to achieve a more agile cost structure in 2019 and beyond.
Addressing Starboard's stated purpose of its letter, their business strategy is intended to realize ambitious goals and enhance value for their shareholders. As planned, Cars.com looks forward to providing long-term financial guidance on or prior to February 28, 2019. They remain open to dialogue with our shareholders, including Starboard, as they develop these targets.
The Board, which also has two independent Starboard directors, is focused on overseeing management performance of the company's overall business strategies and continuing to make the best and most appropriate moves to increase shareholder value.
SOURCE Cars.com Inc.
Edited by M. Hunt
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