Starboard Value Reduces Direct Stake Below 5%, Shifts to Swaps

summarizeSummary

Activist investor Starboard Value LP and its affiliates have reduced their direct beneficial ownership in Bloomin' Brands, Inc. below the 5% threshold, while maintaining significant economic exposure through cash-settled total return swaps.

check_boxKey Events

• Direct Ownership Below 5%

  Starboard Value LP and its affiliates ceased to beneficially own more than 5% of Bloomin' Brands' outstanding shares as of May 8, 2026.

• Shift to Economic Exposure via Swaps

  The reporting persons sold 3.8 million shares of common stock for approximately $30.86 million and simultaneously purchased cash-settled total return swaps for an equivalent number of notional shares.

• Maintained Economic Interest

  Despite reducing direct ownership, Starboard Value LP collectively retains economic exposure to approximately 9.3% of the outstanding shares through these swap agreements.

auto_awesomeAnalysis

This Schedule 13D/A filing indicates a strategic shift by activist investor Starboard Value LP. By selling 3.8 million shares and simultaneously acquiring cash-settled total return swaps for an equivalent number of notional shares, Starboard has reduced its direct beneficial ownership below the 5% reporting threshold. This move lessens their direct voting power and influence over the company, potentially signaling a change in their activist approach or a desire to reduce regulatory reporting burdens. However, their substantial economic exposure, totaling approximately 9.3% of outstanding shares, demonstrates continued financial interest in Bloomin' Brands' performance. Investors should monitor whether this shift impacts the company's governance or strategic direction.