Starboard Value Takes 8% Stake in BILL Holdings, Eyes Board Challenge

Activist investor Starboard Value has quietly built an 8% stake in BILL Holdings (BILL, Financials) and may push for board changes at the payments software company, according to people familiar with the matter.

BILL, which processes more than 1% of U.S. GDP through its platform, has seen its market value shrink to about $5 billion after shares lost nearly half their value this year. Since peaking in 2021, the stock has fallen 86% to $46.88 as of Thursday. In August, the company tried to reassure investors by launching a $300 million buyback, calling its shares undervalued.

Four of BILL's 12 board seats are up for election this year, giving Starboard an opening to nominate its own candidates. The activist is known for pressing companies to streamline operations or consider strategic options, often settling for board representation after a fight.

Starboard has been busy across the market, taking positions in firms including Rogers and Tripadvisor, and adding directors at Autodesk and Kenvue. Analysts say BILL could also attract takeover interest, with rivals like Melio, AvidXchange and Esker recently bought by strategic buyers or private equity.

For now, investors will be watching whether Starboard pushes BILL toward operational changes, board turnover, or even a sale a decision that could shape the company's future in a consolidating sector.