Dow-component Salesforce jumped 7% in premarket trading Tuesday.
Shares of Salesforce have fallen more than 40% this year. The company in August gave a disappointing forecast for fiscal 2023, partly due to negative foreign-exchange impact.
Smith told Faber the stake is significant without specifying the dollar amount.
Smith has remained a prolific activist investor even during the pandemic, calling for changes in Humana, Kohl’s, Mercury Systems and others.
The Starboard CEO will be on CNBC at 10:15 a.m. ET to talk more about the new stake.
Starboard Value manages about $6.2 billion in assets, according to filings through the first quarter of 2020.
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