Chicago – December 11, 2018
Cars.com Inc. (NYSE: CARS) (“Cars.com” or the “Company”), a leading online automotive marketplace, today issued the following statement in response to a press release issued by Starboard Value LP (“Starboard”):
The Board of Directors and management team of Cars.com are committed to acting in the best interests of the Company and its stakeholders to enhance shareholder value. We share Starboard’s view that we have had a constructive dialogue with them over the past year and that our Board and management team are passionate about improving the business.
We are committed to steadfastly executing our strategic plan as we seek to achieve sustainable market leadership in our sector. The acquisition of Dealer Inspire that we completed in February 2018 was a bold step to underpin our strategy to expand from a listings model to a leading online automotive marketplace with value-added digital solutions for our dealer customers. We have also rapidly converted the majority of our affiliate markets and invested in marketing that has increased traffic for 11 consecutive months and driven search engine optimization traffic growth for eight consecutive months. In addition, we have undertaken cost efficiency programs designed to achieve a more agile cost structure in 2019 and beyond.
Addressing Starboard’s stated purpose of its letter, our business strategy is intended to realize ambitious goals and enhance value for our shareholders. As planned, we look forward to providing long-term financial guidance on or prior to February 28, 2019. We remain open to dialogue with our shareholders, including Starboard, as we develop these targets.
The Board, which includes two independent Starboard director designees, is committed to overseeing management’s execution of the Company’s business strategy and continuing to take the best and most appropriate actions to deliver enhanced shareholder value.
Cars.com™ is a leading two-sided digital automotive marketplace that creates meaningful connections between buyers and sellers. Launched in 1998 and headquartered in Chicago, the company empowers consumers with resources and information to make informed buying decisions around The 4Ps of Automotive MarketingTM: Product, Price, Place and Person, by connecting advertising partners with in-market car shoppers and providing data-driven intelligence to increase inventory turn and gain market share. A pioneer in online automotive classifieds, the company has evolved into one of the largest digital automotive platforms, connecting thousands of local dealers across the country with millions of consumers. Through trusted expert content, on-the-lot mobile features and intelligence, millions of new and used vehicle listings, a comprehensive set of pricing and research tools, and the largest database of consumer reviews in the industry, Cars.com is transforming the car shopping experience.