One of the top car marketplaces, Cars.com, recently announced that the company is going through a process to find different ways to improve overall shareholder value. The Board for Cars.com approved for both management and outside advisors to begin the process during a meeting last year and have been deliberating several options that also include possibly selling the company.
The Chairman of the Board for Cars.com, Scott Forbes, said, "We are confident in the Company's strategy to expand from a classified listings model into a leading online automotive marketplace solutions provider. We have undertaken a number of actions toward positioning the Company to drive growth and achieve sustainable market leadership in our sector. We remain committed to that plan, but in light of multiple inquiries which indicate the possibility of realizing that future value now, and after careful consideration, we took the decision to explore strategic alternatives in late 2018, consistent with the Board's commitment to acting in the best interests of the Company and its stakeholders to enhance shareholder value."
Alex Vetter, Chief Executive Officer and President, said, "Cars.com has made rapid progress in its transformation since becoming an independent company in 2017. We have delivered 12 consecutive months of traffic growth. We've accelerated our digital solutions strategy with significant acquisitions and rapid integration of product offerings. We have taken direct control of newspaper affiliate relationships while adapting the company's internal sales and technology operations to accelerate the business strategy, while substantially reducing legacy costs. Throughout this strategic review process, we will continue to execute on our strategy and remain focused on providing exceptional value to our customers."
There is no promise that this process will turn out to be a sale of the company or one of the other possible options. Cars.com doesn't have any date set for the end of their process and won't continue to update until the Board chooses and approves one of the options or if Cars.com has to disclose information when the law dictates.
Cars.com has retained J.P. Morgan as financial advisor and Latham & Watkins LLP as legal counsel for its process of exploring strategic alternatives.
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