Box CEO Aaron Levie on Wednesday protected his business’s choice to accept a significant financial investment from KKR previously this year.
“We felt that we had a very strong long-term partner that wanted to invest in the business and be able to see significant stock appreciation that we believe all shareholders will benefit from,” Levie stated in an interview with CNBC’s Jim Cramer. “We think that the KKR endorsement very is helpful.”
Levie argued the tie-up with KKR, which offered the company a seat on the cloud providers’s board, opened a chance for investors who have either a brief- or long-lasting view on the stock. Box is utilizing funds to perform a stock buyback program.
“This kind of creates an opportunity where some investors that might be more short-term oriented will be able to sell their shares back to the company,” Levie stated in the “Mad Money” look. “If you are more long-term oriented, you can ride the upside as we continue to scale to new levels as a company.”
Levie stated KKR would contribute in assisting to enhance Box’s bottom line, perform acquisitions, introduce brand-new items and broaden on the worldwide phase.
Box shares toppled more than 9% in April after the business revealed it had actually accepted a $500 million financial investment from KKR. The offer was made as Box carried out a tactical evaluation of the business.
The relocation likely ended the opportunity that Box would offer itself off to another purchaser as it dealt with pressure from the activist financier Starboard Value. The hedge fund presently has an 8% stake in the business, according to FactSet.
