© Reuters. FILE PHOTO: A sign advertising online seller Etsy Inc. outside the Nasdaq Market in Times Square following Etsy's initial public offering (IPO) on the Nasdaq in New York April 16, 2015. REUTERS/Mike Segar /File Photo
(Reuters) – Elliott Investment Management has reached an agreement with online marketplace Etsy (NASDAQ:) that cedes a board seat to the activist investment firm, both sides said on Thursday.
Elliott, one of the world's most prominent investors, has a 13% economic stake, including common shares and swaps, said a person familiar with the matter, who asked not to be identified because the discussions are private. That makes Elliott the largest investor in Etsy.
Etsy shares, which have fallen from their 2021 high of $294, rose 10% early Thursday to change hands at $73.08 per share.
Marc Steinberg, a portfolio manager at Elliott, who specializes in technology, media and telecommunications investments at the firm, will join Etsy's board of directors on February 5. Under Steinberg, the board now has 10 members, nine of whom are independent.
“We became a significant investor in Etsy and I will join its board of directors because I believe there is an opportunity for significant value creation,” Steinberg said in a statement.
Elliott declined to comment beyond the statement and Etsy did not immediately respond to Reuters requests for comment.
Steinberg joined the board of directors of social networking and image sharing services company Pinterest (NYSE in December 2022. The company's stock price has increased 100% since Elliott invested in July 2022.
Negotiations between Etsy and Elliott were described as cooperative and the hedge fund did not enter into any agreement or understanding with Etsy that would require the filing of a regulatory filing, the person said.
