Activist investors gearing up for aggressive campaigns in 2025, focusing on corporate leadership and operational changes

Activist shareholders are gearing up for more aggressive campaigns in the second half of 2025, with a surge in fights expected over corporate leadership and operational changes as dealmaking accelerates globally. Companies are bracing for costly battles, with activists like Starboard Value already engaging with companies like Tripadvisor.

In the second quarter of 2025, there was a 16% decrease in campaigns pushing for changes to boost share prices compared to the busy first quarter, signaling a temporary slowdown in activist investor activity. Concerns over tariffs and tax policies under President Donald Trump held some activists back from launching public campaigns.

Established activists like Elliott Investment Management and newcomers are reviewing new ideas to push companies to perform better, with board changes being a popular demand in 43% of campaigns in the first half of 2025. Expectations are high for an increase in demands for company sales or spin-offs, with growing investor confidence in global dealmaking.

Institutional investors overseeing $35 trillion in assets view activism as a useful market force, with many activists opting for quiet settlements instead of messy proxy fights. Recent settlements, like Jana Partners avoiding a boardroom battle with Lamb Weston, indicate a trend towards peaceful resolutions between activists and companies, albeit with a hint of strategic weakness on both sides.

Read more at Yahoo Finance: Analysis-Activist investors set to push for changes as dealmaking picks up