SQN sends letter to Yelp, notes underperformance, lack of meaningful response
SQN Investors, the beneficial owner of more than 4% of the outstanding common stock of Yelp, issued a public letter to the Yelp board. In the letter, SQN outlines what it sees as the current board's lack of accountability and failure to address the numerous challenges facing Yelp, and calls for the board to be refreshed with new, independent voices - including the addition of stockholder representatives. "SQN Investors is currently one of the company's top five stockholders, beneficially owning more than 4% of the outstanding common stock of Yelp. We first invested in Yelp in August 2015 and have been consistent buyers of the stock, despite the company's prolonged underperformance. Yelp is now one of our largest investments. We believe that the size and duration of our investment demonstrate the level of conviction we have in both Yelp's leading position in local search and the potential value-creation opportunities that lie ahead for the company, if managed correctly. Now in our fourth year as investors, we feel we have given the board and management ample time to create value for stockholders. Our patience has now worn out. We are deeply concerned by the board's lack of urgency in addressing many of the issues facing Yelp. In our view, the board has failed to hold itself and management accountable for the company's strategic and operational missteps, repeated missed earnings, lost opportunities, and poor corporate governance. The lack of a meaningful response from the board, despite our considerable effort to engage with the board and management to address these issues, has caused us to speak publicly now before more time is wasted and further opportunities squandered."